The Sacrifice Ratio Is Calculated by

Multiple Choice

The sacrifice ratio is calculated by

A) dividing the number unemployed by the labour force.
B) dividing the number employed by the labour force.
C) dividing the cumulative loss of real GDP (as a percentage of potential GDP) due to disinflation by the number of percentage points by which inflation fell.
D) dividing the cumulative loss of potential GDP (as a percentage of actual GDP) due to disinflation by the number of percentage points by which inflation fell.
E) adding the cumulative loss of real GDP (as a percentage of potential GDP) due to disinflation to the number of percentage points by which unemployment exceeds the NAIRU.