The Sacrifice Ratio Is

question 10

Multiple Choice

The sacrifice ratio is:

• A)the sum of the inflation and unemployment rates
• B)the percentage by which actual output falls below full employment output for every one percentage point that actual unemployment is above the natural rate of unemployment
• C)the inflation rate divided by the unemployment rate
• D)the number of percentage points of annual output that are lost in the process of reducing inflation by one percentage point

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