"If Inflation Is Fully Anticipated by All Parties, the Redistributional

question 58

Essay

"If inflation is fully anticipated by all parties, the redistributional effects would be minimal. It's the fact that inflation surprises us that causes there to be winners and losers." Comment. Which costs still occur even with fully anticipated inflation?

---

Definitions:

Action Potentials

Electrical impulses that are the means of communication and signal transmission within the nervous system, particularly among neurons.

Excitatory Postsynaptic

Pertaining to the process in which a neurotransmitter increases the likelihood of an action potential firing in the postsynaptic neuron.

Electric Potential

The amount of electric potential energy per unit charge at a point in a field, representing the force that would be exerted on a positive test charge placed at that point.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body via electrical and chemical signals.