Thus the immediate effect of the inflation is to increase the wage for X by $14.29 - $13.64 = $.65—that is, by about 4.8%. (Of course, the price of the consumers' good G might also increase because of the inflation; in that case, however, the marginal contribution of X would increase by the same proportion, so that the wage of X would increase relative to the consumer price by about 4.8%.)
Now let us examine inflation's effect on a factor Y, which like X adds $15 to the market value of the final product, but which is a higher-order good with a longer period of production—namely, two years:
free-market DMVP of Y = $15 / 1.1 / 1.1 = $12.40
inflationary DMVP of Y = $15 / 1.05 / 1.05 = $13.61
Thus the inflation increases Y's wage by $13.61 - $12.40 = $1.21—by about 9.8%, more than twice its effect on X. In summary, higher-order goods with longer periods of production (like Y) are more sensitive to interest rates and consequently are overvalued in the inflationary economy. Because the "boom" phase of the business cycle over-allocates resources to industries specializing in these higher-order factors, those industries are commonly said to be "cyclical." 
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