If a Central Bank Reduces Inflation 2 Percentage Points and This

question 65

Multiple Choice

If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year,the sacrifice ratio is

• A)5/2.
• B)3/2.
• C)2/3.
• D)2/5.

---

Definitions:

Different Consequences

This term refers to varying outcomes or effects that may result from a particular action or set of actions in different contexts or under different conditions.

Robert Merton

An American sociologist known for developing theories such as the strain theory, and for coining terms like "self-fulfilling prophecy" and "role model."

Latent Function

Unintended or unrecognized consequences of actions, social processes, or structures within a society.

Unintended Consequences

Outcomes that are not foreseen or intended by a purposeful action, which can be positive, negative, or neutral in nature.