If a Central Bank Reduced Inflation by 3 Percentage Points

question 82

Multiple Choice

If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,the sacrifice ratio is

• A)1.
• B)2.
• C)3.
• D)None of the above is correct.

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Definitions:

Recovery

The process of returning to a normal state of health, mind, or strength after experiencing damage or illness.

Exercise

Physical activities undertaken to maintain or enhance health and fitness, including aerobic, strength, flexibility, and balance exercises.

Stress

The body's reaction to any change that requires an adjustment or response, which can be physical, mental, or emotional.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, dilating bronchial passages, and decreasing motility of the large intestine.