how does inflation make some people worse off and others better off? how does price effects income effects and wealth effects all redistribute economic outcomes?

Q: Inflation distorts relative prices. what does this mean and why does it impose a cost on society?

A: Inflation means an increase in prices during a period of time.

Q: Who loses from inflation? Who benefits from inflation?

A: Inflation is the rise in price index such as CPI and GDP deflator over a stated time period. As a…

Q: What causes the rate of inflation in macroeconomics?

A: Inflation reflects a constant rise in the price level over time or it is a sustained increase in the…

Q: an the government make things worse by intervening in markets? Are there other options outside the…

A: Market interventions are measures that change or impede the market, normally done by state-run…

Q: Why should the government not try to make inflation zero?

A: Inflation is the rise in the overall level of prices in an economy.