Menu costs of inflation are the:
A) costs associated with money not being a reliable unit of measurement.
B) costs of transactions associated with avoiding the inflation tax.
C) costs associated with businesses changing prices.
D) revenue the government gets from printing money.

Question

Quizplus · Accepted Answer

Menu costs of inflation are the costs associated with businesses changing their prices to keep up with inflation. This includes the costs of updating price lists, printing new menus, and changing price tags on products. It is not related to money as a unit of measurement (A), avoiding the inflation tax (B), or revenue from printing money (D).

Menu Costs of Inflation Are The