An unexpected increase in inflation,by diluting the informational content of prices,will lead to an increase in unemployment.

Question

Quizplus · Accepted Answer

Unexpected inflation can distort price signals, making it harder for businesses and consumers to make informed decisions, but it does not directly lead to an increase in unemployment. Unemployment is influenced by a variety of factors including economic growth, productivity, and labor market policies.

An Unexpected Increase in Inflation,by Diluting the Informational Content of Prices,will