The major cost associated with the Gold Standard is that the adjustment of the price level and output to an external imbalance is completely automatic.

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The Gold Standard is a monetary system in which the value of a country's currency is directly linked to the value of gold. This means that the government agrees to buy and sell gold at a fixed price. The major cost associated with the Gold Standard is that the adjustment of the price level and output to an external imbalance is completely automatic. This means that if there is a trade deficit, the country will lose gold, which will lead to a decrease in the money supply and a fall in the price level. This will make exports cheaper and imports more expensive, which will help to correct the trade deficit. However, this process can be very painful, as it can lead to deflation and recession.

The Major Cost Associated with the Gold Standard Is That