The menu cost of inflation involves
A) the mistakes producers make in adjusting prices.
B) the mistake people make when they do not know the actual rate of inflation.
C) cost-of-living adjustments.
D) the costs associated with changing price lists.
D
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If consumers suddenly decide they no longer want to purchase hybrid vehicles, the price of hybrid vehicles will likely ________ and producers will ________ production
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
The decline in wholesale and consumer prices in 1929–30 was not as large as had been the decline in 1920–21
Indicate whether the statement is true or false
The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is
A) producers' surplus. B) consumers' surplus. C) marginal revenue. D) marginal utility.
The rationale for the existence of central banks is mainly that:
A. financial markets lack transparency. B. financial systems are prone to periods of extreme volatility. C. they are needed for the supervision of banks. D. financial intermediation cannot occur without a central bank.