Problem on unanticipated inflation


Question: Evaluate as accurately as you can how each of the following individuals would be affected by unanticipated inflation of 10 percent per year:

a. A pensioned railroad worker

b. A department store clerk

c. A unionized automobile assembly line worker

d. A heavily indebted farmer

e. A retired business executive whose current income comes entirely from interest on government bonds

f. The owner of an independent small town department store

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Microeconomics: Problem on unanticipated inflation
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