Question
2008 Brazil recession consumer price shows a year on year increase from 2006 to 2008 Unemployment reduced year on year from 2006 to 2008 Real
2008 Brazil recession
consumer price shows a year on year increase from 2006 to 2008
Unemployment reduced year on year from 2006 to 2008
Real GDP increased 2006 to 2008
2008 Real GDP suddenly dropped, Unemployment increased and consumer price reduced slightly
My question to you --> Was the sudden drop in real GDP due to the lag of sticky prices in keynesian theory?
My background understanding FYI: As price increased year on year and unemployment decreased year on year, i am assuming salaries didnt increase at the rate of consumer price therefore when salaries couldnt afford price, the result of the shock was recession?
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