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4. Menu costs are the: increase in the transaction costs caused by inflation. costs of money becoming less reliable. real cos
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Menu costs are the real costs of changing listed prices.

In other words, the phrase "menu costs" simply refers to costs that result from price changes. It is the cost incurred by a firm when it makes a price change. The phrase literally refers to the resultant cost of printing a new menu that the restaurant incurs. In this context, one may cite the contribution of economist Gregory Mankew who as an important proponent of New Keynesian Economics, writes abundantly to explicate the operation of "Menu costs".

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