The Next Questions Refer to the Following

question 10

Multiple Choice

The next questions refer to the following.
Suppose that, in the absence of supply shocks, the inflation-unemployment relationship is inflation rate = expected inflation rate + 2(natural rate of unemployment - actual unemployment rate) .
-The sacrifice ratio in this case is

• A) 2
• B) 1
• C) .5
• D) .01
• E) .005