Inflation is undesirable because it: always makes the nation poorer. redistributes income from those who can raise prices to those who cannot. distorts the information value of prices.

In a market economy, supply and demand are important because theya. (i) play a critical role in the allocation of the economy's scarce resources.b. (ii) determine how much of each good gets produced.c. (iii) can be used to predict the impact on the economy of various events and policies.d. all of (i), (ii), and (iii) are correct.