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AP® Macroeconomics

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Costs of Inflation: Changing Price Tags

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Betsy owns a convenience​ store in a country that is experiencing a 50 % inflation rate. Betsy has hired a worker whose sole job is to change the price tags on the goods she sells in order to keep up with inflation.

Which cost of inflation is Besty experiencing?

A

Shoeleather costs.

B

Unit-of-account costs.

C

Fixed costs.

D

Menu costs.

E

Average costs.