Question: The electricity prices and the natural gas prices have increased drastically, 15 percent and 12 percent respectively. The direct effect of these increases on the inflation rate is 0.6...

Question:
The electricity prices and the natural gas
prices have increased drastically, 15 percent
and 12 percent respectively. The direct effect
of these increases on the inflation rate is 0.6
percent, and the indirect effect is more than 1
percent. Taking into consideration that the
producer price index is over 38 percent.
1.Please discuss in detail the effects of these
increases on the consumer price index,
exchange rate and the current account deficit

2. What are the policies that should be
implemented to counterbalance the effects of
these price increases on the economy?