If People in Countries That Have Had Persistently High Inflation

question 44

Multiple Choice

If people in countries that have had persistently high inflation are skeptical about efforts to reduce inflation, the short-run Phillips curve will remain far to the

• A)left, and the sacrifice ratio will be low.
• B)left, and the sacrifice ratio will be high.
• C)right, and the sacrifice ratio will be low.
• D)right, and the sacrifice ratio will be high.