Inflation distorts relative prices. What does this mean and why does it impose a cost on society?
Relative prices are the value of one good in terms of other goods. Relative prices ordinarily provide signals concerning the relative scarcity of goods so the goods may be allocated efficiently. Some prices change infrequently, so that when inflation rises, there is greater variation in relative prices. However, changes in relative prices created by inflation do not signal changes in the scarcity of goods and so lead to an inefficient allocation of goods and resources.
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Refer to Figure 4.8. How many stable Nash equilibrium points are there in this game?
A) 0 B) 1 C) 2 D) 3
Which groups tend to have greater difficulties finding employment as a result of the minimum wage?
A) Minorities B) Teens C) Those with little work experience D) All of the above.
The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution)
a. 68.26% b. 2.28% c. 34% d. 15.87% e. none of the above
Banks that operate under Islamic law are no longer considered intermediaries between borrowers and lenders because they are not allowed to charge interest
a. True b. False Indicate whether the statement is true or false