Which of the Following Best Defines the Sacrifice Ratio

question 11

Multiple Choice

Which of the following best defines the sacrifice ratio?

• A) the sum of the inflation and unemployment rates
• B) the inflation rate divided by the change in output
• C) the number of percentage points annual output falls for each percentage point reduction in inflation
• D) the number of percentage points unemployment rises for each percentage point reduction in inflation

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing to sell at a given price level.

Compact Disks

Optical storage media used to store data, including music and software, now largely superseded by digital formats.

Substitute

A product or service that can be used in place of another to satisfy consumer demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specified period.