If the Sacrifice Ratio Is 3,reducing the Inflation Rate from 10

question 86

Multiple Choice

If the sacrifice ratio is 3,reducing the inflation rate from 10 percent to 5 percent would require sacrificing what percent of annual output?

• A) 2 percent of annual output
• B) 5 percent of annual output
• C) 6 percent of annual output
• D) 15 percent of annual output

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