Costs of inflation do NOT include _____ costs.
A) menu
B) shoe-leather
C) unit-of-account
D) efficiency-wage

Question

Quizplus · Accepted Answer

Efficiency-wage costs are not related to inflation. Menu costs are the costs associated with changing prices, shoe-leather costs are the costs of frequent trips to the bank due to diminishing purchasing power of money, and unit-of-account costs refer to the confusion caused by inflation in making long-term economic decisions.

Costs of Inflation Do NOT Include _____ Costs