Define inflation and distinguish a real concept from a nominal concept. State two important costs of inflation.© BrainMass Inc. brainmass.com June 21, 2018, 6:07 pm ad1c9bdddf
In economics, inflation is a change in some important measure of money which says either real or apparent value is falling. The three most obvious versions of this, each held by some economists to be "real" inflation, are for prices to rise compared to the currency in question, the overall value of that money to fall (perhaps compared to other currency), or for more of that money to be added to the economy.
Distinguish a real concept from a nominal concept:
Generally a real variable, such as the real interest rate, is one where the effects of inflation have been factored in. A nominal variable is one where the effects of ...
Define inflation and distinguish a real concept from a nominal concept. State two important costs of inflation