Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 3R, Problem 19MCQ
To determine
The costs of inflation.
Expert Solution & Answer
Explanation of Solution
Inflation represents a general increase in the prices of goods and services in the market, and the inflation rate represents the percentage rise in the overall price level in an economy in a given period of time.
Inflation imposes economic costs on the market. The major economic costs are:
- Unit of account cost
- Shoe-leather cost, and
- Menu cost.
The economy experiences unit-of-account costs of inflation when inflation makes money a less reliable unit of measurement.
Thus, option “a” is correct.
Chapter 3R Solutions
Krugman's Economics For The Ap® Course
Ch. 3R - Prob. 1MCQCh. 3R - Prob. 2MCQCh. 3R - Prob. 3MCQCh. 3R - Prob. 4MCQCh. 3R - Prob. 5MCQCh. 3R - Prob. 6MCQCh. 3R - Prob. 7MCQCh. 3R - Prob. 8MCQCh. 3R - Prob. 9MCQCh. 3R - Prob. 10MCQ
Ch. 3R - Prob. 11MCQCh. 3R - Prob. 12MCQCh. 3R - Prob. 13MCQCh. 3R - Prob. 14MCQCh. 3R - Prob. 15MCQCh. 3R - Prob. 16MCQCh. 3R - Prob. 17MCQCh. 3R - Prob. 18MCQCh. 3R - Prob. 19MCQCh. 3R - Prob. 20MCQCh. 3R - Prob. 21MCQCh. 3R - Prob. 22MCQCh. 3R - Prob. 23MCQCh. 3R - Prob. 24MCQCh. 3R - Prob. 25MCQCh. 3R - Prob. 1FRQCh. 3R - Prob. 2FRQCh. 3R - Prob. 3FRQCh. 3R - Prob. 1CTQCh. 3R - Prob. 2CTQCh. 3R - Prob. 3CTQCh. 3R - Prob. 4CTQCh. 3R - Prob. 5CTQ
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