the inflationary spiral explains the causes and effects of high inflation. the spiral usually begins with an…
the inflationary spiral explains the causes and effects of high inflation. the spiral usually begins with an increase in demand. what is the direct effect of this increase?\nproducers raise prices to continue to make a profit.\nthe government prints more money, lowering the value of money.\nworkers negotiate with employers to receive more money.\nconsumers need higher wages to keep up with rising prices.
Answer
Brief Explanations:
When demand increases in the start - of an inflationary spiral, producers, aiming to maintain profit margins, raise prices. This is the most direct effect among the given options. The other options are later steps in the inflationary process.
Answer:
Producers raise prices to continue to make a profit.