If a Central Bank Reduced Inflation by 4 Percentage Points

question 84

Multiple Choice

If a central bank reduced inflation by 4 percentage points and this made output fall by 5 percent for one year and 3 percent for another year and the unemployment rate rise 2.5 percent above its natural rate for one year and 1.5 percent above its natural rate for another year,the sacrifice ratio was

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

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Definitions:

Organizational Efficiency

The ability of an organization to implement its strategies and achieve its goals with minimum resources and waste.

Herzberg

Refers to Frederick Herzberg, a psychologist best known for developing the Motivation-Hygiene Theory, which distinguishes between factors that satisfy or dissatisfy employees in the workplace.

Responsibility

An obligation or duty to perform or complete a task with a level of care and competence.

Job Analysis

The systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization.