Which of the following is TRUE?
A)the costs of unemployment on output are more apparent than the cost of inflation on output
B)the costs of inflation on output are more apparent than the cost of unemployment on output
C)the costs of inflation on output can be measured by Okun's law
D)unanticipated inflation only imposes a cost on currency holders
E)there are no costs to society from anticipated inflation

Question

Quizplus · Accepted Answer

Unemployment directly reduces output as fewer people are working, making its impact on output more apparent than inflation, which affects output indirectly through price level changes.

Which of the Following Is TRUE