If the Fed Reduces Inflation 1 Percentage Point and This

question 169

Multiple Choice

If the Fed reduces inflation 1 percentage point and this makes output fall 5 percentage points and unemployment rises 2 percentage points for one year, the sacrifice ratio is

• A)1/5.
• B)2.
• C)5/2.
• D)5.

---

Definitions:

Fir

A type of evergreen tree belonging to the genus Abies, known for its tall growth and needle-like leaves.

Spruce

A genus of coniferous trees found in northern temperate and boreal regions, valued for their wood and ornamental uses.

Adaptations

Changes or processes through which organisms or species evolve to become better suited to their environment.

Store Water

The process of collecting and retaining water for future use, crucial in areas with limited or seasonal rainfall.