Costs of Inflation: Shoe-leather Costs and Menu Costs

12. Unemployment and Inflation / Costs of Inflation: Shoe-leather Costs and Menu Costs / Problem 3

Problem 3

What are menu costs?

Costs associated with taxation during inflation.

Costs incurred by businesses when changing prices due to inflation.

Costs related to the depreciation of assets.

Costs related to the inconvenience of holding cash.