Inflation Can Cause a Misallocation of Resources Because

question 198

Multiple Choice

Inflation can cause a misallocation of resources because

• A) inflation doesn't proceed evenly which means that people have a difficult time determining when a price change signals a change in relative prices.
• B) firms have to change their price labels at unusual times.
• C) the nominal rate of inflation doesn't equal the real rate of inflation.
• D) people are encouraged to borrow too much.

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Definitions:

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The study of aging and the challenges encountered as individuals grow older, including the biological, psychological, and social aspects of aging.

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