Part of the _____ is an economic downturn, which causes _____.
GDP growth, inflation
economic cycle, cyclical unemployment
Federal Reserve, interest rates
Part of the economic cycle is an economic downturn which causes inflation. When the economy is down the supply is very low but the demand tends to be very high which then causes rapid increase in inflation rates in a particular country. If this trend is not prevented and continues to grow, more problems will arise (e.g. hunger, poverty).
