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Inflation can be very costly, and is generally exponentially increasing in cost as it increases linearly. Most economists believe that inflation over 10% a year in an economy would be disastrous in the long-run. Here are the three main sources of cost due to inflation:
1) Shoe-leather costs, which are incurred due to individuals having to move to spend or use money more often, since money is more valuable when first received than it will be later.
2) Menu costs, which are incurred because firms have to adjust their prices and resources listing their prices (and this requires time and effort).
3) Redistributional costs, which are incurred on account of economic agents changing the distribution of their assets as the value of money itself changes.
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Will inflation Peter out?
inflation peter out is when inflation diminish or stops .
What refers to the persistent increase in the prices of goods and services?
inflation
The consumers price index helps the U.S. government measure what?
inflation
What will bi the formula of inflation?
Current year's inflation - last year's inflation / last year's inflation * 100 e.g ((B-A)/A)*100
What was Romeo and his inflation with Rosaline?
Inflation or infatuation?
Why are food items so costly today then back then?
The rise in prices is due to inflation.
What inflation rate?
inflation
Inflation rates?
inflation
What is the superlative for costly?
The superlative for costly is "most costly" or "costliest."
Will inflation Peter out?
inflation peter out is when inflation diminish or stops .
What refers to the persistent increase in the prices of goods and services?
inflation
The consumers price index helps the U.S. government measure what?
inflation
Is costly an adjective?
Yes, costly is an adjective. E.g. It was a costly mistake. (One that was expensive to fix, or that led to other bad consequences.)
Synonyms of expensive?
Costly.
What will bi the formula of inflation?
Current year's inflation - last year's inflation / last year's inflation * 100 e.g ((B-A)/A)*100
What part of speech is inflation?
Inflation is a noun.
What was Romeo and his inflation with Rosaline?
Inflation or infatuation?
