The principal way in which inflation imposes costs upon the members of a society is by
A) destroying the incentive to consume.
B) increasing the cost of planning correctly.
C) lowering wages relative to prices.
D) making goods more scarce.
E) raising the percentage of the population below the official poverty line.
B
Economics
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A flat LM curve implies that
A) an increase in government spending will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively small amount. C) changes in government spending and taxes will have a large multiple effect on output. D) A and B.
Economics
If there are steady decreases in aggregate supply, the economy will experience
A) a slow decrease in price levels. B) demand-side inflation. C) an expansionary gap. D) supply-side inflation.
Economics