Explain how inflation can lead to distortions.
Explain how inflation can lead to distortions.
发布时间：2025-08-16 04:40:02
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答案：First, not all prices and wages adjust automatically when inflation occurs. Second, variations in relative prices (which occur when there is not pure inflation) can lead to uncertainty. Inflation can also lead to distortions if the tax system is not adjusted when inflation occurs (e.g. nominal income tax brackets).
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