If the Sacrifice Ratio Is 3, Reducing the Inflation Rate

question 121

Multiple Choice

If the sacrifice ratio is 3, reducing the inflation rate from 10 percent to 6 percent would require sacrificing what percent of annual output?

• A)2 percent of annual output
• B)5 percent of annual output
• C)6 percent of annual output
• D)12 percent of annual output

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Definitions:

Vocabulary Words

A set of words known and used by a person, important for communication and understanding in a particular language.

Hermann Ebbinghaus

A German psychologist best known for his pioneering work on memory and learning, including the discovery of the forgetting curve.

Forgetting Occurs

The process where information once learned and stored in the brain is lost or becomes harder to recall over time.

Encoding Failure

A situation in which information does not enter the brain's long-term memory and thus is forgotten.