Question

According to the scenario, what is the greatest economic challenge that country d is facing

Answer 1

Answer: inflation

Explanation:

Answer 2

Answer:

The most significant economic challenge that the country faces is stagflation

Explanation:

This scenario occurs when there is inflation. Based on research by economists, stagflation disrupts the supply chain severely. For instance, when the costs of one product are in a state of original the price of the other products may rise, making the products nonprofitable.

Monetary policy is another fact that leads to stagflation, and this happens when too much money is pushed to circulation with fiscal policies such as higher regulation and over-taxation.