The costs of expected inflation cause productive resources of an economy to be expended on adjusting to changing prices. Explain how each of the following costs of expected inflation distort the allocation of productive resources:
a.shoe leather costs
b.menu costs

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The Answer of The costs of expected inflation cause productive resources of an economy to be expended on adjusting to changing prices. Explain how each of the following costs of expected inflation distort the allocation of productive resources:
a.shoe leather costs
b.menu costs

The Costs of Expected Inflation Cause Productive Resources of an Economy