Learn Before
Academic and Central Bank Research on Post-Pandemic Corporate Markups (2022-2023)
During 2022 and 2023, significant research was conducted by academic institutions and central banks to investigate whether firms were using the economic conditions following the COVID-19 pandemic and the Russia-Ukraine war as an opportunity to increase their profit markups.
0
1
Tags
Economics
Economy
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Introduction to Macroeconomics Course
Related
Figure 4.25: Price Responses to Rising Employment and Capacity Utilization
An economy experiences a period where the costs of labor and raw materials remain stable. However, after a wave of mergers reduces the number of companies in several key industries, the remaining firms begin to increase their prices significantly more than their production costs. Which of the following best identifies and explains the resulting inflationary pressure?
Analyzing Inflation Drivers in an Economy
Explaining an Alternative Inflationary Mechanism
Arrange the following events in the correct chronological order to illustrate the process by which a reduction in market competition can lead to a sustained increase in the general price level.
In a scenario of profit-push inflation, where firms increase their price markups due to a decrease in market competition, the price-setting (PS) curve shifts upward, creating a positive bargaining gap that drives inflation.
Match each component of the profit-push inflation model with its corresponding role or outcome in the economic process.
Evaluating Claims About Inflation Drivers
When firms with increased market power decide to raise their profit margins, the price-setting curve shifts ______, which creates a bargaining gap and initiates an inflationary spiral at the existing level of employment.
Disaggregating Inflationary Pressures
Consider an economy where several key industries become more concentrated, leading to reduced competition. Firms in these industries subsequently raise their prices, even though their costs for labor and materials have not changed. Within the standard wage-setting and price-setting framework, what is the direct mechanism that initiates the resulting inflation?
Upward Shift of the Phillips Curve due to a Negative Supply Shock
Distributional Conflict from Unexpected Inflation
Figure 4.20c: The Mechanism of Profit-Push Inflation
Effect of Low Unemployment on Worker Bargaining Power and the WS Curve
Figure 4.26: Profit-Push Inflation Due to Capacity Constraints
Academic and Central Bank Research on Post-Pandemic Corporate Markups (2022-2023)
Learn After
Evidence of Sellers' Inflation in the US from Input-Output Analysis
Interaction of Market Power and COVID-19 Shocks Drove Sellers' Inflation
An economic analyst reviewing data from 2022-2023 notes that in several key sectors, aggregate corporate profits rose at a rate significantly exceeding the increase in their labor and material costs. Given the prominent debates and research priorities of major central banks (like the ECB and US Federal Reserve) during that specific period, which of the following hypotheses would most likely have been investigated as a primary explanation for this trend's contribution to inflation?
Interpreting Central Bank Communications on Inflation Drivers
Analyzing Corporate Pricing Strategy in the 2022-2023 Inflationary Environment
During the high inflation period of 2022-2023, the public discourse from major central banks, such as the US Federal Reserve and the European Central Bank, attributed the price increases almost exclusively to rising labor costs and pandemic-related supply chain disruptions, largely dismissing the potential impact of expanding corporate profit margins.
Rationale for Central Bank Focus on Corporate Profits (2022-2023)
Match each term related to the economic discussions of 2022-2023 with its most accurate description in the context of that period's inflation.
During the 2022-2023 period of high inflation, research by institutions like the European Central Bank and the IMF investigated the contribution of expanding corporate profit margins, a phenomenon often referred to as '____ inflation'.
Arrange the following events in the logical sequence that reflects how the role of corporate markups in the 2022-2023 inflation was identified and addressed by major economic institutions.
An economist observes that during the 2022-2023 inflationary period, public statements from institutions like the European Central Bank and the US Federal Reserve began to include discussions about the contribution of corporate profit margins to rising prices. What does this specific focus suggest about their analysis of that period's inflation, distinguishing it from a scenario driven purely by rising wages or broad-based consumer demand?
Evaluating Competing Inflation Narratives (2022-2023)
Central Bank Officials' Statements on Corporate Profits' Role in 2022 Inflation
Ongoing and Varied Research on Sellers' Inflation