Which of the Following Scenarios Is Consistent with Typical Estimates

question 73

Multiple Choice

Which of the following scenarios is consistent with typical estimates of the sacrifice ratio?

• A)Inflation is reduced from 4 percent to 1 percent,and annual output falls by 10 percent.
• B)Inflation is reduced from 6 percent to 4 percent,and annual output falls by 10 percent.
• C)Inflation is reduced from 8 percent to 5 percent,and annual output falls by 9 percent.
• D)Inflation is reduced from 3 percent to 2 percent,and annual output falls by 3 percent.

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