Question

select all that apply
which of the following are considered true costs of inflation?
□ unexpected redistribution of wealth
□ meat - and - potatoes costs
□ interference with long - term planning
□ shoe - leather costs
□ noise
□ expected redistributions of wealth

Explanation:

Unexpected redistribution of wealth occurs as inflation can benefit or harm different economic agents depending on their financial positions. Interference with long - term planning happens because inflation makes future prices and returns uncertain. Shoe - leather costs refer to the resources wasted in trying to avoid the costs of holding money during inflation (e.g., more frequent trips to the bank). These are all recognized costs of inflation. "Meat - and - potatoes costs" is not a recognized economic term related to inflation costs, "noise" is not a typical cost of inflation in economic analysis, and expected redistributions of wealth are less of a cost as economic agents can potentially plan for them.

Answer:

unexpected redistribution of wealth, interference with long - term planning, shoe - leather costs