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2.5 Costs of Inflation ENDURING UNDERSTANDING MEA-1 An economy's performance can be measured by different indicators such as gros. domestic product (GDP), the inflation rate, and the unemployment rate. LEARNING OBJECTIVE ESSENTIAL KNOWLEDGE MEA-1.H.1 Explain the costs that Unexpected inflation arbitrarily redistributes unexpected inflation wealth from one group of individuals to another (deflation) imposes on group, such as lenders to borrowers. individuals and the economy