There is a current on-going debate as to whether the current inflation rise is temporary or might become a more permanent feature of the economic environment. In the New York Times article posted on Canvas, Paul Krugman argues for the differences between the 1970s and the current scenario. Which of the following items is NOT part of Krugman's case for the current inflation spike to be categorized as temporary O recent inflation has been driven mostly by pandemic affected goods O Fed's Beige book narrative suggests that firms are reluctant to raise wages O the Cleveland Fed's measure of expected inflation has surpassed 2% more appropriate to compare current inflation with post WWII and post Korean war inflationary periods rather than 1970s inflation The CEA blog story posted on Canvas discusses housing prices and their contribution to the CPI. Housing is part consumption and part investment. Since the CPL is intended to measure consumption prices, only the consumption equivalent price of housing is included in the CPI. The consumption portion of housing is called owner equivalent rent (OER). So, housing prices enter the CPI in two items: rent (non- owner occupied rent) and OER. Since the pandemic, housing prices have increased sharply, but the CPI rent and OER numbers remain below pre- pandemic trend. o increased sharply and the CPI rent and OER are sharply above pre- pandemic trend O declined, but the CPI rent and OER numbers are above pre-pandemic trend. O declined and the CPI rent and OER numbers are below pre-pandemic trend. Question 13 1 pts There is a current on-going debate as to whether the current inflation rise is temporary or might become a more permanent feature of the economic environment. In the Project Syndicate article posted on Canvas, Ken Rogoff draws parallels between the current situation and the origins of the 1970s inflation. Match the 1970s scenario to the similar current one as described in the article. Increased spending on Increased government spending on the Vietnam War and the Great Society Program increase in oil prices break down of the glot slow down in innovation durin the 1970s I Choose possible overestimation of future productivity gains from biotech and artificial intelligence Increased spending on pandemic related measures and proposed infrastructure spending break down of the global supply chains