The spiral usually begins with an increase in demand. what is the direct effect of this increase?

The spiral usually begins with an increase in demand. The direct effect of this increase is that the producers (of commodities) raise prices to continue to make a profit. It usually begins with a rise in production costs.

Answer;

Producers raise prices to continue making profit

Explanation;

-Inflationary spiral refers to a situation where there is a  continuous increase in prices which is sustained by the tendency of wage increases and cost increases to react on each other.

-The spiral usually begins with an increase in demand. The direct effect of this increase is that the producers (of commodities) raise prices to continue to make a profit. It usually begins with a rise in production costs.

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