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?

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