Which of the following is a cost of inflation?
A)shoeleather costs
B)menu costs
C)relative price variability
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options (shoeleather costs, menu costs, and relative price variability) are considered costs of inflation. 
Shoeleather costs refer to the time and effort spent in response to inflation, such as increased trips to the bank to withdraw cash or transfer funds. 
Menu costs are the costs incurred by firms when they need to change their prices due to inflation, such as the cost of printing new menus or updating online pricing. 
Relative price variability is the uncertainty caused by inflation, which can make it difficult for consumers and firms to make informed decisions about prices and production.

Which of the Following Is a Cost of Inflation