Suppose the Bank of Canada Reduces Inflation 2 Percentage Points,and

question 65

Multiple Choice

Suppose the Bank of Canada reduces inflation 2 percentage points,and this makes output fall 10 percentage points and unemployment rises 4 percentage points.What is the sacrifice ratio?

• A) 1 / 5
• B) 2
• C) 5
• D) 8

---

Definitions:

Hypokrisia

In Meehl’s theory, the reduced selectivity with which nerve cells respond to stimuli, especially as seen in schizophrenia.

Neuronal Reactivity

The responsiveness of neurons in the brain to various stimuli or changes in the environment, affecting an individual's behavior and cognitive processes.

Meehl's Theory

An influential set of hypotheses proposed by psychologist Paul Meehl, particularly concerning the etiology of mental disorders.

Prolonged Labour

A condition in childbirth where labor lasts for a significantly longer duration than is typically expected, possibly leading to complications.