Costs of Inflation Practice Test

In an economy experiencing inflation, the inflation rate is expected to be 3% but turns out to be 6% for the next two years. A firm signs a two-year fixed-price supply contract to buy inputs at a nominal price set today, and the supplier cannot change the contract price. Which outcome best identifies a real economic cost of this sustained, unexpected inflation?

In an economy experiencing inflation, inflation runs at 5% per year for three years, but a 3-year labor contract sets nominal wages to rise by only 2% per year over the same period. The contract was signed when both workers and firms expected 2% inflation. Which statement best describes the cost of inflation illustrated here?