The Sacrifice Ratio Is

question 90

Multiple Choice

The sacrifice ratio is

• A)the amount of output lost when the inflation rate is reduced by one percentage point.
• B)the percentage reduction in inflation when output falls one percentage point below potential.
• C)the percentage change in employment when output declines by one percentage point.
• D)the number of percentage points that the unemployment rate rises when output declines by one percentage point.

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Definitions:

Demand (D)

A fundamental concept in economics that describes consumers' willingness and ability to purchase goods or services at various prices.

Supply (S)

The total amount of a specific good or service that is available to consumers.

Cost Of Producing

The total expenditure incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.