In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would

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The increase in food and energy costs led to cost-push inflation, while the slowdown in production led to a decrease in aggregate supply. This resulted in stagflation, which is a combination of high inflation and low economic growth.

In the First Half of 2008, Food and Energy Costs