Which of the Following Is Not a Cost of Inflation

question 35

Multiple Choice

Which of the following is not a cost of inflation identified by economists?

• A)menu costs associated with more frequent adjustment of prices
• B)confusion and inconvenience resulting from a changing value of the unit of account
• C)reduced price flexibility
• D)arbitrary redistributions of wealth associated with dollar-denominated debts

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Definitions:

Cycle Time

The total time from the beginning to the end of a process, providing a measure of the efficiency of production.

Output Rate

The quantity of goods or services produced by a system, machine, or worker in a given time period.

Efficiency

The ability to accomplish a job with a minimum expenditure of time and resources.