If a Central Bank Reduces Inflation 2 Percentage Points and This

question 65

Multiple Choice

If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year,the sacrifice ratio is

• A)5/2.
• B)3/2.
• C)2/3.
• D)2/5.

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Definitions:

Maladaptive Behavior

Actions or tendencies that inhibit an individual’s ability to adjust to particular situations, often counterproductive to their well-being.

Irrational Thoughts

Ideas that are not based on reality or logical reasoning, often leading to negative emotions and behaviors.

Learning Perspective

An approach in psychology that emphasizes the role of environmental influences and experiences in shaping behavior through learning processes.

Unquestioned Ideas

Beliefs or assumptions that are accepted without examination or critical analysis, often taken for granted.