If a Central Bank Reduces Inflation 2 Percentage Points and This

question 65

Multiple Choice

If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year,the sacrifice ratio is

• A)5/2.
• B)3/2.
• C)2/3.
• D)2/5.

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Definitions:

Decision-making Meetings

Meetings specifically convened to discuss issues and make choices or determinations about future actions.

Persuade

To persuade an individual to adopt a certain belief or take a specific action by using logic or discussion.

Analyze

Examine in detail for the purpose of explanation and interpretation.

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In a way that involves two or more people or entities working together towards a common goal or project with shared efforts.