Fed's Kaplan Says Businesses Have Low Pricing Power

The video discusses the concept of transitory inflation, highlighting the role of technology and globalization in shaping current economic conditions. It explains how traditional business models are being disrupted by technology-enabled models, affecting pricing power and inflation. The discussion also touches on unemployment rates and the challenges businesses face in passing wage pressures onto consumers due to increased competition and consumer choices.

What is the primary focus of Rob Kaplan's definition of transitory inflation?

• Permanent technological changes

• Global trade policies

• Long-term economic growth

• Temporary economic factors

How does technology-enabled disruption affect businesses' pricing power?

• Increases their ability to set higher prices

• Reduces their pricing power

• Has no effect on pricing power

• Leads to higher inflation rates

What is a significant factor contributing to the current muted inflation, according to the video?

• Increased government spending

• Technology-enabled disruption

• Rising oil prices

• Higher interest rates

Which of the following is an example of industry disruption mentioned in the video?

• Traditional banking models

• Cable television networks

• Local grocery stores

• Kodak and Polaroid being replaced by digital technology

What is a key characteristic of new business models replacing traditional ones?

• Limited consumer choices

• Higher operational costs

• Cheaper and better value for consumers

• Increased reliance on manual labor