The real costs of inflation to society include:
A)an increase in the general level of prices.
B)lost purchasing power of income.
C)higher relative prices.
D)interference with long-term planning.

Question

Quizplus · Accepted Answer

If inflation is unanticipated, parties to long-term contracts are uncertain about the value of repaid dollars, so these contracts are sometimes not written. Note that income will only lose purchasing power if it is not adequately adjusted for inflation.

The Real Costs of Inflation to Society Include