1. Run your cursor over the graph. In what year/quarter did the U.S. experience the highest rate of inflation? What was the annual rate of inflation?

2. According to the BLS, the annual inflation rate for the year ended 2022:Q1 was 8.00% In which quarters did the annual inflation rate exceed 8.00%? You can find the answer by placing your cursor on the graph.

3. In how many of the seven recessions prior to the Covid pandemic did U.S. experience
disinflation

4. In how many of the seven recessions prior to the Covid pandemic did the U.S.experience a period of rising inflation?

5. Look at the behavior of the inflation rate during recessions. What happens to the rate of inflation over a recession? (Does it rise? Does it fall? Does it remain constant? Is its behavior inconsistent?) Describe the behavior of the inflation rate during a recession. Try to make a general statement then note any exception

 

FRED Consumer Price Index for All Urban Consumers: All Items in U.S. City Average Percent Change from Year Ago of (Index 1982-1984=100) 15.0 12.5 10.0 7.5 5.0 2.5 0.0 -2.5 1965 1970 Shaded areas indicate U.S. recessions. 6.0 1975 1980 1985 1980 1990 1995 Source: U.S. Bureau of Labor Statistics 2000 2005 2010 2015 2020 fred.stlouisfed.org 2011