Question

Read the scenario.The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP. Based on the scenario, who is most affected by the situation taking place within Country D?

Answer 1

Answer:

D. the government, workers, and businesses of Country D

Explanation:

The government, workers and businesses are all affected in one way or the other. With the rise in the average price of the goods in country D, the country is suffering from Inflation.

In the scenario the government and workers are affected by their ability to purchase goods. With the rise in price, both worker's and government expenditure will have to increase in order to meet up with the regular amount of previously bought goods before the rise in prices. Invariably this will lead to lesser purchases by both parties.

For businesses, with the rise in prices, demand from consumers reduces which usually ends up affecting their profits.

In general, the cost of living and cost of doing business will all be on the rise.

Answer 2

Answer:

1.

inflation

2.

all are affected

Explanation:

drop down on edg 2020