If a Central Bank Reduced Inflation by 3 Percentage Points

question 82

Multiple Choice

If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,the sacrifice ratio is

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

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Definitions:

Clothing

Fabrics and textiles used for making garments that are worn on the body.

Food

A substance consumed to provide nutritional support for an organism, typically consisting of plant, animal, or fungal origin.

Choice Set

A collection of all feasible alternatives or options available to a decision-maker in a decision-making scenario.

Clothing Price

The amount of money required to purchase garments and textiles, influenced by factors such as fashion, brand, material, and production costs.