The inflationary spiral explains the causes and effects of high inflation. the spiral usually begins with a rise in production costs. what is the direct effect?

a)producers raise prices to continue to make a profit.
b)the government prints more money and lowers its value.
c) workers negotiate with employers to receive more money.
d) consumers need higher wages to keep up with rising prices

A)Producers raise prices to continue to make a profit.

Explanation:

The inflationary spiral is the effect that the rise on average prices of production costs produces on the economy, after that rise on the production costs, producers rise the final cost of the product in order to mantain a reasonable profit on the sell of the products and this starts the inflationary spiral.

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