Assume That the Sacrifice Ratio for an Economy Is 4

question 10

Multiple Choice

Assume that the sacrifice ratio for an economy is 4. If the central bank wishes to reduce inflation from 10 percent to 5 percent, this will cost the economy ______ percent of one year's GDP.

• A) 4
• B) 5
• C) 20
• D) 40

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products from the baby's blood.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.

Society

A large group of individuals living together in a more or less ordered community, often sharing common cultural and social norms.

Culture

The set of beliefs, practices, arts, customs, and social behavior of a particular nation or people.