Summary: Currently many nations in the world have successful economies and are concerned with inflation. In the last decade most nations were in a deep recession, and this affected everyone's economy differently. After this, central banks did what they could to lower interest rates, and increase investments for all nations. By 2009, the United States was successfully recovering, and by last year positively grew at a 2.3% rate. While a growing economy means well for the U.S., this also means there is a higher demand for essential needs for different businesses. In class we learn how the demand curve shifts depending on how high the demand for a certain product is, and in this case if the economy is increasing, the expectations for future prices will be at a higher demand and the demand curve will shift right.
Questions:
1. How do you think the supply/demand will be affected by this?
2. Do you think the U.S. can maintain this increasing rate?
Link:https://www.nytimes.com/interactive/2018/02/14/business/economy/inflation-prices.html
1 comment:
It's definitely nice to see the economy booming once more after the 2008 recession. People are more willing to buy things, increasing demand. Prices of products may rise, but not without wage increases as well. We'll see how the tax cuts affect inflation rates in the United States, but we should be able to maintain an increasing economy barring any catastrophic circumstance.
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