Although there are numerous factors that can affect a counties GDP, especially today when the entire world is so "connected", a major reason why GDP fluctuates so much in this part of the world is that these economies rely primary on agriculture, which can be profitable one year and then not profitable the next, due to weather changes.
<span>Some colonies could not prosper because their geography limited their economic options. </span>
Thats the answer to your answer
Inflation is the rise in the price of goods and services supplied in an economy.
As a monetary policy action, the federal reserve will increase the federal funds rate in order to reduce the flow of money supply to the economy. In other words, by making it more expensive for entities to borrow money, this will consequently reduce the amount of money that is circulating in the streets. By rule of supply of demand, as there is less money to buy products and services, the prices of goods and services will start to drop.