When comparing the costs of inflation to society, it is important to distinguish between
A)low versus high rates of inflation.
B)expected versus unexpected inflation.
C)high price levels and low price levels.
D)real versus nominal inflation.

Question

Quizplus · Accepted Answer

It is important to distinguish between expected and unexpected inflation because expected inflation can be anticipated and factored into decisions, whereas unexpected inflation can lead to economic uncertainty and distortions in the economy. The other options are not as relevant in comparing the costs of inflation to society.

When Comparing the Costs of Inflation to Society, It Is