"These cost and price increases are occurring in an environment in which the risks of a spillover into core inflation are increasing. Before the two hurricanes, the output gap was forecasted to be essentially closed by the end of this year."
I have an internal assesment wre i should analyze an article that talks about economics..bu ti cant really understand and analyze this paragraph :D i would appreciate it if you help me :D:D:D
2007-02-28 02:10:19 · 1 answers · asked by Anonymous in Education & Reference ➔ Homework Help
I'm guessing this is about oil and gas prices. It is saying that before Hurricane Katrina (and the other one right after it) production levels were increasing to meet demand. But now there is such strong demand relative to production that prices are being pushed up. They are being pushed up so much that it is threatening to affect the overall rate of inflation in the economy.
2007-02-28 02:48:41 · answer #1 · answered by CanProf 7 · 0⤊ 0⤋