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What are the economic and social costs of high inflation levels?
High inflation will have serious redistribution costs; make distortions to the economy; decrease international competitiveness;
Affect the balance of payments and exchange rate;
Have negative effects on growth.
The price of milk is usually much less expensive in a grocery store versus a convenience store. Using economic terminology, explain why people purchase milk at convenience stores.
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definition of abnormal isoquant and normal isoquant
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