If the Sacrifice Ratio Is 4,then Reducing the Inflation Rate

question 6

Multiple Choice

If the sacrifice ratio is 4,then reducing the inflation rate from 9 percent to 5 percent would require sacrificing

• A)4 percent of annual output.
• B)8 percent of annual output.
• C)12 percent of annual output.
• D)16 percent of annual output.

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Definitions:

Penicillin

A group of antibiotics derived from Penicillium fungi, used for treating bacterial infections.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws, policies and for regulating public affairs.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.