The primary reason we think of inflation as bad even when wages rise with it is that it:
A) makes things more expensive for consumers.
B) leads to lower real wages.
C) distorts the information delivered by prices.
D) increases the velocity of money.

Question

Quizplus · Accepted Answer

Inflation distorts the information delivered by prices, making it difficult for consumers and businesses to make informed decisions, even if wages rise with inflation.

The Primary Reason We Think of Inflation as Bad Even