Summers Says U.S. Unemployment Is Now Below Its ‘Natural’ Rate

Summers Says U.S. Unemployment Is Now Below Its ‘Natural’ Rate

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the current economic situation, highlighting a strong demand but limited supply, leading to a lower unemployment rate and higher wage growth than expected. This scenario raises concerns about inflation, as average hourly earnings have increased significantly. The Federal Reserve's interest rates are below the neutral level, which, combined with structural changes post-COVID, poses a risk of inflation. The speaker expresses concern about the economic outlook.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason for the unexpected decrease in the unemployment rate?

Increased supply of goods

Higher demand in the economy

Lower interest rates

Government intervention

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did average hourly earnings change recently?

They fell slightly

They rose at a seven and a half percent annual rate

They remained stable

They decreased significantly

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the Federal Reserve's view on the neutral level of interest rates?

Close to zero

Around 1%

Approximately 2 1/4%

Above 3%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What structural changes are mentioned as influencing the economy post-COVID?

Increased global trade

Vast structural changes

Technological advancements

Population growth

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What risk is associated with having unemployment below the natural rate?

Economic stagnation

Deflation

Increased inflation

Higher interest rates