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:

Motor Starter Contactor

An electromechanical switch used to control the power supply to a motor, providing safe start and stop operations.

Motor Load Current

The current drawn by an electric motor under specific load conditions, indicative of the power it is using to perform its function.

Inverse Time-Delay

Refers to a characteristic of protective devices where the time to trip decreases as the magnitude of the current increases.

Overload Current

The flow of electricity exceeding the normal operating current, potentially causing overheating or damage to electrical components.