Suppose the Current Inflation Rate Is 4% and the Bank

question 97

Multiple Choice

Suppose the current inflation rate is 4% and the Bank of Canada wants to reduce it to 2%,knowing that the sacrifice ratio is 2.Apparently,the Bank of Canada is prepared to accept a decline of real GDP of ________ as the cost of disinflation.

• A)1% of potential output
• B)0.5% of potential output
• C)2% of potential output
• D)4% of potential output
• E)8% of potential output

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Definitions:

Interviewer Responsibility

The duty of an interviewer to conduct fair, unbiased interviews and create an environment where candidates can accurately showcase their qualifications.

Interviewee Responsibility

The obligations and duties of a person being interviewed, such as being prepared and honest.

Speak Quietly

The act of talking in a soft or hushed tone, typically to avoid disturbing others or to convey a sense of privacy.

Thank-You Note

A written or digital message expressing gratitude, often sent as a follow-up after receiving a gift or favor.