The Sacrifice Ratio Is Calculated by

question 56

Multiple Choice

The sacrifice ratio is calculated by

• A)dividing the number unemployed by the labour force.
• B)dividing the number employed by the labour force.
• C)dividing the cumulative loss of real GDP (as a percentage of potential GDP)due to disinflation by the number of percentage points by which inflation fell.
• D)dividing the cumulative loss of potential GDP (as a percentage of actual GDP)due to disinflation by the number of percentage points by which inflation fell.
• E)adding the cumulative loss of real GDP (as a percentage of potential GDP)due to disinflation to the number of percentage points by which unemployment exceeds the NAIRU.

---

Definitions:

Future Amount

The predicted total value of an asset or investment at a specific future date, considering factors like interest rates or earnings.

Discounted Value

The present value of a future payment or series of payments, discounted back to the present time using a specific discount rate.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting time value of money.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.