Everything getting expensive, is inflation coming?
What business, stock will be hot next year?
What can we do?
2007-12-16 04:59:31 · 3 answers · asked by S C 1 in Social Science ➔ Economics
Right now, U.S. has around 3% inflation rate which is the ideal rate but economists worry about next year recession and inflation.
Everything is getting expensive is a result of the increasing oil price. Oil price reduces supply. When supply goes down, output falls >cyclical unemployment rises and inflation goes up.
I think economists worry more about stagflation. Stagflation = unemployment up and inflation up or stagflation can mean recession and inflation at the same time.
Economists predict that US economy would undergo recession in January 2008.
Stock may go down in January!
It depends on the Fed and Government spending.
2007-12-16 13:49:20 · answer #1 · answered by Jason 4 · 1⤊ 0⤋
Inflation is already in the United States, in fact since inflation is contagious with other countries the inflation infected country trades with and/or negotiates with, the United States has spread it to Puerto Rico.
2007-12-16 08:24:17 · answer #2 · answered by janesmithdp 3 · 0⤊ 2⤋
its here already
2007-12-16 05:16:22 · answer #3 · answered by MR MOM USMC RETIRED 3 · 1⤊ 2⤋