If the Fed Reduces Inflation 1 Percentage Point and This

question 92

Multiple Choice

If the Fed reduces inflation 1 percentage point and this makes output fall 2 percentage points and unemployment rises 3 percentage points for six months,the sacrifice ratio is

• A)1.
• B)2.
• C)3.
• D)4.

---

Definitions:

Terror Management Theory

A psychological perspective positing that fear of mortality drives humans to develop cultural worldviews for meaning, stability, and self-esteem.

Mortality

The state of being subject to death; the death rate within a population.

Prejudice

a preconceived opinion or judgment towards people or a situation, which is not based on actual experience or reasoning.

Realistic Group Conflict

The theory that group conflicts arise from actual competition for resources or conflicting goals between groups.