ECONOMICS
INFLATION
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a and c
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b and d
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c and d
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a and b
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Detailed explanation-1: -There are five costs of inflation: shoeleather costs, menu costs, relative price variability, tax distortions, and confusion, and inconvenience. Shoeleather costs describe the costs people face when reducing their money holdings.
Detailed explanation-2: -The true statement is option d) It refers to an increase in the average level of prices. The inflation over a given period signifies the general increase in the average price level of goods and services.
Detailed explanation-3: -demand-pull, cost-push, and. inflation expectations.
Detailed explanation-4: -The Consumer Price Index (CPI) CPI, less food and energy. Personal Consumption Expenditures (PCE) Personal Consumption Expenditures excluding food and energy or “Core PCE” 23-Sept-2019