Write 1-2 pages on the given topic double space
Question Description
Review the following new clip and answer the following questions:U.S. producer prices unexpectedly fell in September, leading to the smallest annual increasein nearly three years, which could give the Federal Reserve room to cut interest rates againlater this month.The weak producer inflation readings reported by the Labor Department on Tuesday cameagainst the backdrop of a slowing economy amid trade tensions and cooling growth overseas.The Fed cut rates in September after reducing borrowing costs in July for the first time since2008, to keep the longest economic expansion on record, now in its 11th year, on track.The producer price index for final demand dropped 0.3% last month, weighed down bydecreases in the costs of goods and services, the government said. That was the largestdecline since January and followed a 0.1% gain in August.In the light of the above news clip:1. What will be the impact of smallest annual increase on GDP growth over a period oftime?2. If FEDS cut interest rates will that help to stabilize the economy? If yes, Why or whynot?3. According to your understanding of the economic growth, what advice would you give tothe FEDs to stabilize economic growth?Develop a report (1-2 pages) based on this current event analyzing the Consumer’s andProducer’s incentives (Hint: Demand and Supply) to continue to be a part of this business.Give real-life examples in support of your discussion.
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