If a Central Bank Reduced Inflation by 2 Percentage Points

question 56

Multiple Choice

If a central bank reduced inflation by 2 percentage points and that made output fall by 3 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years,the sacrifice ratio is

• A)1.
• B)2.
• C)3.
• D)None of the above is correct.

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Definitions:

Composition

The way in which something is made up or formed from several parts or elements.

Parts And Wholes

A philosophical concept exploring the relationship between components (parts) and their collective entities (wholes), examining how parts interact and contribute to the identity and functionality of wholes.

Glucose Intolerance

A condition wherein the body is unable to effectively process glucose, leading to higher than normal blood sugar levels; a precursor to diabetes.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated.