Question

Inflation is:
A) not regarded as an economic problem because every person's nominal income rises in proportion to the increase in the price level
B) Regarded as an economic problem because every person's nominal income rises in proportion to the increase in the price level
C) REgarded as an economic problem because it can have redistributive effects, lead to increased speculation, and cause greater uncertainty
D) Regarded as an economic problem because where there is inflation, everyone is worse off.

Answer 1

You can eliminate A and B because your income doesn't necessarily rise at the same rate of inflation.

You can eliminate D because not everyone is worse off where there is inflation.

C makes perfect sense.

Answer 2

You there?:)