Answer:
a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.
Costs imposes by Inflation: Price confusion
b. Carson is angry because the price of donuts increased from $1 to $2 since last week
Costs imposes by Inflation: Menu costs
c. Your grandmother's savings account pays 2% interest, but inflation is 5%.
Costs imposes by Inflation: Wealth redistribution
d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
Costs imposes by Inflation: Not associated with listed cost
e. Jim is reluctant to sell his stocks at the end of the year.
Costs imposes by Inflation: Not associated with listed cost
f. John thinks his new salary in NYC will increase his standard of living
Costs imposes by Inflation: Money illusion
g. Kallie is taking more trips to ATM now that the post.
Costs imposes by Inflation: Shoe-leather costs
