ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Costs of finding better rates of return
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Costs of altering price lists
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Costs of money increasing its value
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Costs of revaluing the currency
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Detailed explanation-1: -Menu costs usually are the result of inflation. For example, if the cost of food, rent, or wages goes up, a restaurant will have to raise its prices to pay for the extra cost and to make the same profit. When raising prices, there are additional costs, such as printing new menus, updating the website, etc.
Detailed explanation-2: -Menu costs refer to the costs of changing listed prices. Menu costs include the costs of calculating what the new prices should be, printing new menus and catalogs, changing price tags in a store, delivering new price lists to customers, and changing advertisements.
Detailed explanation-3: -In economics, the menu cost is a cost that a firm incurs due to changing its prices. It is one microeconomic explanation of the price-stickiness of the macroeconomy put by New Keynesian economists. The term originated from the cost when restaurants print new menus to change the prices of items.
Detailed explanation-4: -Menu costs help to explain: the positive slope of the short-run aggregate supply curve.
Detailed explanation-5: -Rapidly rising prices are harming American families, eroding the value of their paychecks, and increasing the financial strain of buying everyday goods like groceries and gasoline. Inflation is also eroding the value of savings, making it harder for Americans to build wealth.