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:

Perturb

To disturb or unsettle significantly, often used in the context of altering one's mental or emotional state.

Reorganize

The process of rearranging or restructuring thoughts, behaviors, or organizational systems.

Technical Eclecticism

An approach in therapy that utilizes techniques from various psychological theories based on their effectiveness for specific problems, rather than adhering to a single theoretical framework.

Theoretical Principles

Fundamental concepts or assumptions that form the basis for theories, guiding research and practice in various academic and professional fields.