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Business, 18.03.2021 01:10 jasmine3051

Identify which cost of inflation—menu costs or shoe-leather costs—is illustrated in each of the scenarios. a. During the German hyperinflation of 1921‐1923, some workers reportedly were paid two to three times per day. They would then rush out to spend their earnings before they became nearly worthless.

This is an example of:

1. menu costs.
2. shoe‑leather costs.

b. A hyperinflation in Zimbabwe was so severe that, according to one observer of supermarket employees, they were "running around that store with label makers, changing the prices three, four times a day."

This is an example of:

1. menu costs.
2. shoe‑leather costs.

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Answers: 2

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