This week we learned about the short-run economic fluctuations: aggregate demand, aggregate supply, the influence of monetary and fiscal policy on aggregate demand, and the short-run trade-off between inflation. Reflect on the lecture and textbook readings as you answer the scenario below:

Increasingly, cost changes for merchandise and an ascent in the consistency of pricing because of the development of online retailers might influence inflation. "In the previous 10-years, online rivalry has raised both the recurrence of price changes and the level of uniform evaluating crosswise over location," said Alberto Cavallo, a partner educator at Harvard Business School, who examined in what capacity, called multi-channel retailers - those with block and-mortar and online outlets (for example, Walmart, Inc.) have responded to the ascent of Amazon.com" (Dunsmuir, 2016). "Fuel costs, exchange-rate fluctuation, or some other power-influencing costs that may enter the estimating calculations utilized by these organizations are bound to have a quicker and bigger effect on retail costs than previously," he finished up. Read the following article: https://www.reuters.com/article/us-usa-fed-inflation/amazon-effect-could-have-impact-on-inflation-dynamics-paper-idUSKCN1LA0IO For your initial discussion post, respond to the following prompts:

• Evaluate the information presented, and conclude whether Amazon.com is causing disinflation or not? Explain your conclusion.
• Make a recommendation on how The Fed should correct this disinflation, if it exists.