Which of the Following Both Make the Sacrifice Ratio Higher

question 395

Multiple Choice

Which of the following both make the sacrifice ratio higher than otherwise?

• A)the Phillips curve is steep, inflation expectations adjust quickly.
• B)the Phillips curve is steep, inflation expectations adjust slowly.
• C)the Phillips curve is flat, inflation expectations adjust quickly
• D)the Phillips curve is flat, inflation expectations adjust slowly.

---

Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes and inflation, reflecting the real value of goods and services produced.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to deflate or remove the effect of inflation from GDP.

GDP Deflator

An indicator representing the price levels of all newly domestically made final products and services within a country, utilized to convert nominal GDP into real GDP.

Net Domestic Product

The total value of all goods and services produced within a country's borders in a given time period, after accounting for depreciation.