How would a permanent reduction in inflation impact shoeleather costs and unemployment?
A)It would permanently reduce shoeleather costs and permanently lower unemployment
B)It would permanently reduce shoeleather costs and temporarily raise unemployment
C)It would temporarily reduce shoeleather costs and temporarily lower unemployment
D)It would temporarily reduce shoeleather costs and temporarily raise unemployment

Question

Quizplus · Accepted Answer

A permanent reduction in inflation reduces shoeleather costs permanently because people need to make fewer trips to the bank. However, it can temporarily raise unemployment due to the short-term adjustment period in the economy.

How Would a Permanent Reduction in Inflation Impact Shoeleather Costs