When inflation redistributes income from one group in the economy to another,it is an example of which effect?

Question

Quizplus · Accepted Answer

Inflation redistributing income from one group to another is an example of the equity effect, as it affects the distribution of income and wealth in the economy. The efficiency effect refers to changes in the overall level of production and resource allocation, whereas the output and input effects are not relevant in this context.

When Inflation Redistributes Income from One Group in the Economy