The Sacrifice Ratio Is the

question 35

Multiple Choice

The sacrifice ratio is the

• A)sum of the inflation and unemployment rates.
• B)inflation rate divided by the unemployment rate.
• C)number of percentage points annual output falls for each percentage point reduction in inflation.
• D)number of percentage points unemployment rises for each percentage point reduction in inflation.

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Definitions:

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price.

Price

The amount of funds needed to purchase a commodity, service, or asset.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Income

Recurrent earnings sourced from occupational activities or investments.