Which of the following is NOT a cost of inflation?
A) unexpected redistribution of wealth and income
B) reduction in the value of cash that is held
C) higher real values of output
D) small inefficiencies from things like printing new price labels with higher prices

Question

Quizplus · Accepted Answer

Inflation does not lead to higher real values of output; instead, it typically erodes the purchasing power of money, affecting the economy in various ways such as redistributing wealth and income, reducing the value of cash held, and causing inefficiencies, but it does not inherently increase the real output of an economy.

Which of the Following Is NOT a Cost of Inflation