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Sauron [17]
3 years ago
6

Identify which cost of inflation—menu costs or shoe-leather costs—is illustrated in each of the scenarios.

Business
1 answer:
olga2289 [7]3 years ago
3 0

Answer:

shoe‑leather costs

. menu cost

Explanation:

Inflation is constant price in general price level

Types of inflation

  1. demand pull inflation
  2. cost push inflation

Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.

Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.

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