Current Event PaperYou will submit a 2-3 page paper based on an article of a current event. The paper should bea summary of the article and then analysis of an economic principle effecting the event....

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Current Event PaperYou will submit a 2-3 page paper based on an article of a current event. The paper should bea summary of the article and then analysis of an economic principle effecting the event. The principle can be any that has been covered in the course todate. I would like my paper to be in Inflation.
Answered Same DayMay 30, 2021

Answer To: Current Event PaperYou will submit a 2-3 page paper based on an article of a current event. The...

Komalavalli answered on Jun 03 2021
151 Votes
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Inflation and pandemic effect of corona virus:
Consumer price index is the indicator for measuring the inflation rate in an economy. Inflation ra
te in US before the pandemic outbreak of COVID 19 is 2.3% in 2019 which is considered to be highest since 2011 inflation rate of 3%.This inflation rate was higher than the targeted inflation rate of 2%Reason for high inflation rate is increase of 0.2% in food price, 2.8% in price of gas, cost of medial increased by 0.6%, health care by 4.6%, the cost of eating out increases at faster pace. Rate of inflation has changed in opposite direction after the outbreak of COVID 19. Currently global economy is worsening due the pandemic outbreak. The disease claimed several lives of people in worldwide; US also lost several people during this time. In order to control the toll rate, government has imposed lockdown; this caused a disruption in supply chain and had great impact on the price of consumer goods.
From above chart we can say that in April 2020 Consumer Price Index is -0.8 which is a lower value compared with last year CPI index value. The reason for decline in CPI index value is mainly due to impose of lockdown in USA in order to minimise the effect of pandemic disease outbreak. Reason for decrease in Consumer Price Index in April 2020 is the price of food at home increased by 2.6% compared to previous month, because all people got panic and started to pile up groceries, snacks items at home. The excess demand for food items...
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