The paradoxical economy has economists scratching their heads

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Written By Jennifer Joslyn

💰 The paradoxical economy has economists scratching their heads.

There are several possible explanations for why inflation could be high despite weak economic growth and low unemployment, including the near-constant supply chain disruptions. When the supply of goods and services is disrupted due to factors like a pandemic, natural disasters, or political instability, the prices of goods and services can increase due to scarcity. This can lead to inflation even when the economy is not growing very quickly. Additionally, if production costs increase due to higher wages or raw material costs, producers may raise prices to maintain their profit margins.

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Jennifer Joslyn
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