One of the reasons macroeconomists have concerns about inflation is that inflation causes
A)real GDP to rise.
B)nominal GDP to fall.
C)wages to rise as fast as prices.
D)real GDP to exceed nominal GDP.
E) none of the above

Question

Quizplus · Accepted Answer

Inflation concerns macroeconomists primarily because it erodes purchasing power, creates uncertainty, and can lead to less efficient allocation of resources, among other issues. None of the options A, B, C, or D directly address these core concerns.

One of the Reasons Macroeconomists Have Concerns About Inflation Is