Cost-push inflation will reduce supply and lower real output and employment which will eventually generate an "economic recession".
<h3>What is economic recession?</h3>
The National Bureau of Economic Research (NBER) describes a recession as "a large fall in economic activity distributed across the economy, lasting more than a few months."
Some characteristics of economic recession are-
- Recessions are marked drops in economic activity that can endure for several months or even years.
- When a country's economy faces negative gross domestic product (GDP), growing unemployment, declining retail sales, and contraction income and manufacturing metrics over an extended period of time, experts declare a recession.
- Recessions are regarded as an inevitable component of the economic cycle, or the predictable rhythm of expansion and recession in a country's economy.
- The organisation bases its decision on a variety of variables, such as GDP, real income, employment, industrial production, and consumer spending.
To know more about economic recession, here
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Diplomacy best describes Jeremy’s ability to interact with his co-workers.
Answer:
A. We should expect higher interest rates and lower stock prices.
Explanation:
Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.
Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.
Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.
a balance achieved between two desirable but incompatible features; a compromise.
