The Distinction Between Price Confusion Problems and Menu Costs Is

question 101

Multiple Choice

The distinction between price confusion problems and menu costs is that

• A) price confusion results from confusion between relative demand and inflationary pressures,whereas menu costs have to do with people confusing changes in nominal and real wages.
• B) menu costs result from confusion between relative demand and inflationary pressures,whereas price confusion has to do with people confusing changes in nominal and real wages.
• C) price confusion results from confusion between relative demand and inflationary pressures,whereas menu costs relate to producers changing prices,typically during inflationary periods.
• D) menu costs occur during deflation,whereas price confusion problems occur during inflation.
• E) menu costs only affect the food industry,whereas price confusion problems occur in high-tech industries.

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