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8 March, 08:27

Jacques manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the of inflation.

a. menu costs

b. shoe-leather costs

c. unit-of-account costs

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  1. 8 March, 11:57
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    Answer: a. menu costs

    Explanation:

    Menu Costs of inflation are the costs associated with sellers and suppliers having to update their prices whenever they increase.

    This is the cost of making new tags, updating catalogues, updating websites and anything that has to do with updating price.

    It gets it's name from Restaurant menues having to be reprinted when prices rise.

    Jacques is experiencing Menu Costs.
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