What Stocks Are Good During A Recession?

During a recession, a solid investing approach is to look for companies that are retaining strong balance sheets or stable business models despite the economic downturn. Utilities, basic consumer products conglomerates, and defense stocks are examples of these types of businesses. Investors frequently increase exposure to these groups in their portfolios in anticipation of declining

What Stocks Are Good During A Recession? Read More »

How Can The Price Of Raw Materials Affect Inflation?

In order for cost-push inflation to occur, demand for the affected product must be constant while manufacturing costs are changing. To compensate for the higher production costs, producers hike consumer prices to preserve profit margins while keeping up with predicted demand. What effect does the price level have on inflation? The present price level of

How Can The Price Of Raw Materials Affect Inflation? Read More »

How Does Productivity Affect Inflation?

The first has increased productivity, which allows cost savings to trickle down to product prices, lowering inflation. As a result, higher productivity growth is a positive supply shock that reduces inflationary pressures. What effect does lower productivity have on inflation? Slow productivity growth leads to higher inflation rates. Because an exoge- nous drop in productivity

How Does Productivity Affect Inflation? Read More »