These frequent changes epitomize the problem of wrong money illusions.
- Money illusion is an economic hypothesis that holds that people tend to see their wealth and income in nominal dollar terms rather than in actual dollar terms. In other words, it is considered that consumers do not consider an economy's level of inflation, mistakenly assuming that a dollar is worth the same as it was the previous year.
- According to the theory of money illusion, people have a tendency to evaluate their wealth and income in nominal dollar terms rather than recognize their true value, adjusted for inflation.
- Economists attribute money illusion to issues such as a lack of financial education and price stickiness in many commodities and services. Employers are believed to take advantage of this by moderately raising wages in nominal terms but paying less in real terms.
Thus, these frequent changes are the problem of wrong money illusions.
To learn more about money illusions, refer: https://brainly.com/question/22238746
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