If the Sacrifice Ratio Is Five, It Means That in Order

question 53

Multiple Choice

If the sacrifice ratio is five, it means that in order to reduce inflation by one percentage point, the economy will experience _____.

• A)a reduction of annual output by five percentage points
• B)a rise of annual output by five percentage points
• C)a reduction of annual output by 0.20 percentage points
• D)a rise of annual output by 0.20 percentage points

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