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Recessionary Gap and Inflationary Gap

  • Participation #1 (answer the following questions in the same order requested, including each related question, separate, and using the same numbers):
  1. According to your own research, which one is the item (mention only one good or service) that is contributing the most to the current (2021) level of inflation in the U.S.?
  2. Explain the most important reason that better supports your answer #1. Use no more than 32 words.
  3. Explain your best recommendation to prevent your previously mentioned item from keep increasing its price that high. Consider an ideal free (competitive) market environment (no government intervention). Use no more than 32 words.
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