Inflation can cause small inefficiencies in an economy, such as the need to change price tags, reprint catalogs, and update websites. These inefficiencies are referred to as:
A) inflation tax.
B) nominal costs.
C) real costs.
D) menu costs.

Question

Quizplus · Accepted Answer

These inefficiencies are known as menu costs, which are the costs associated with changing prices due to inflation, such as the need to change price tags, reprint menus or catalogs, and update websites.

Inflation Can Cause Small Inefficiencies in an Economy, Such as the Need