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:

Canadian Law

The legal framework governing Canada, consisting of constitutional, statutory, regulatory, and common law, impacting various aspects of life including labor and employment.

U.S. Law

The legal system governing the United States, comprising federal, state, and local laws, regulations, and statutes.

Collective Bargaining

A process where labor unions and employers negotiate terms of employment such as wages, hours, working conditions, and benefits.

Strike Weapon

The leverage gained by workers or unions through the threat or implementation of a strike to enforce demands or negotiate better terms with employers.