If a Central Bank Reduced Inflation by 3 Percentage Points

question 170

Multiple Choice

If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,the sacrifice ratio every year is

• A)1.
• B)2.
• C)3.
• D)None of the above is correct.