| adjustable rate mortgage (ARM) | A home loan in which the interest rate changes in line with current market interest rates.
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| cost-of-living adjustment (COLA) | Indexes wages to the inflation rate.
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| distributional consequences of unemployment | The costs of unemployment (recession) are borne very unevenly, namely by those people who lose their job.
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| indexation | Automatic adjustment of prices and wages according to inflation rate.
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| indexed debt | Debt in which interest payments are adjusted upward each year to
account for inflation.
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| menu cost | Small cost incurred when the nominal price of a good is changed; for example, the cost for a restaurant of reprinting its menus when it raises/lowers its prices.
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| perfectly/imperfectly anticipated inflation | The extent to which people have perfect foresight with regards to the inflation rate.
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