The Sacrifice Ratio Is

question 90

Multiple Choice

The sacrifice ratio is

• A)the amount of output lost when the inflation rate is reduced by one percentage point.
• B)the percentage reduction in inflation when output falls one percentage point below potential.
• C)the percentage change in employment when output declines by one percentage point.
• D)the number of percentage points that the unemployment rate rises when output declines by one percentage point.

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