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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
The given statements would be correctly matched with their inflation costs associated would be as follows:
a). A jeweler observes the price of the gold rise and wonders if there is a shortage of gold. - Price confusion
b). Carson is angry because the price of donuts increased from $1 to $2 since last week. - Menu costs
c). Your grandmother's savings account pays 2% interest, but inflation is 5%. - Wealth redistribution
d). The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today. - Not associated with the costs listed.
e). Jim is reluctant to sell his stocks at the end of the year. - Not associated with the costs listed.
f). John thinks his new salary in NYC will increase his standard of living - Money illusion
g). Kallie is taking more trips to ATM now that the post. - Shoe-leather costs
Inflation Costs
The various costs imposed by inflation include:
- Shoe-leather costs
- Menu costs.
- Redistribution of wealth.
- Money Illusion
- Loss of purchasing power.
Shoe-leather costs are characterized as the cost that one pays through his/her additional time and effort for the same task due to inflation.
While menu costs are associated with the cost born by the firm due to the alteration of the price of the product for the consumers.
Wealth redistribution stands for the transfer of money or wealth possessions from one to another is exemplified through Granny's savings.
Money Illusion is the term that displays the biased tendency of people considering the value in its nominal form instead of the real which makes them think a higher pay scale in a foreign country would increase their lifestyle.
Learn more about "Inflation" here:
brainly.com/question/1699650
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