Yellen Says We're Not Seeing a Wage-Price Spiral

The video discusses unusual economic disruptions caused by extreme demand-supply imbalances, particularly in the automotive sector due to semiconductor shortages. It highlights the tech sector's unexpected challenges as demand normalizes. The impact of energy and food prices on inflation is examined, noting that while these factors temporarily boost inflation, they do not trigger a wage price spiral. The underlying economic dynamics remain stable, despite these shocks, and are not reminiscent of the 1970s and 1980s.

What was one of the main causes of price increases in the automobile sector?

• Government regulations

• High labor costs

• Shortage of semiconductors

• Increased consumer demand

How did the tech sector react to the changes in demand patterns?

• They shifted to new markets

• They maintained their current size

• They expanded significantly

• They reduced their workforce

What geopolitical event contributed to fluctuations in energy and food prices?

• US-China trade war

• Middle East peace talks

• Brexit

• Russia-Ukraine conflict

Since the mid-80s, how have energy and food prices typically affected inflation?

• They have no impact on inflation

• They temporarily boost inflation rates

• They have led to a wage-price spiral

• They have caused a permanent increase in inflation

What has been the trend in inflation expectations despite recent economic shocks?

• They have become highly volatile

• They have remained well-anchored

• They have decreased sharply

• They have increased significantly