Consider an Economy That Is in the Process of a Disinflation.If

question 103

Multiple Choice

Consider an economy that is in the process of a disinflation.If the sacrifice ratio is 3,then

• A)unemployment increases by 3% for every 1% reduction in inflation.
• B)it costs 3% of GDP to reduce inflation by 1 percentage point.
• C)the cumulative loss of output in the economy will reach a total of 3%.
• D)the costs of disinflation are 3 times the benefits of disinflation.
• E)unemployment increases by 3% during the period of disinflation

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Definitions:

Schacter-Singer

A theory of emotion that suggests emotions are determined by physiological arousal and the cognitive labeling of that arousal.

Emotional Experiment

A psychological experiment designed to study the emotional responses and their underlying mechanisms in human beings or animals.

Physiological Aroused

A physical state of heightened alertness and readiness for action, often as a response to a stimulus, involving changes in heart rate, blood pressure, and muscle tension.

Physiological Reaction

Responses within the body to external stimuli, including changes in heart rate, hormone levels, or respiration.