If a Central Bank Reduced Inflation by 2 Percentage Points

question 51

Multiple Choice

If a central bank reduced inflation by 2 percentage points and that made output fall by 1 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years,the sacrifice ratio is

• A)1/2.
• B)1.
• C)2.
• D)4.