If a Central Bank Reduced Inflation by 4 Percentage Points

question 84

Multiple Choice

If a central bank reduced inflation by 4 percentage points and this made output fall by 5 percent for one year and 3 percent for another year and the unemployment rate rise 2.5 percent above its natural rate for one year and 1.5 percent above its natural rate for another year,the sacrifice ratio was

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

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Definitions:

ISO 14001

An international standard that specifies requirements for an effective environmental management system (EMS).

TQM

Total Quality Management, a management approach focused on continuous quality improvement of products and services, involving all organization members.

Process Capability

A statistical measure of a process's ability to produce output within specified limits, reflecting the inherent variability and performance of the process.

Armand Feigenbaum

An American engineer and quality expert who developed the concept of Total Quality Control.