Consider an Economy That Is in the Process of a Disinflation.If

Multiple Choice

Consider an economy that is in the process of a disinflation.If the sacrifice ratio is 3,then

A) unemployment increases by 3% for every 1% reduction in inflation.
B) it costs 3% of GDP to reduce inflation by 1 percentage point.
C) the cumulative loss of output in the economy will reach a total of 3%.
D) the costs of disinflation are 3 times the benefits of disinflation.
E) unemployment increases by 3% during the period of disinflation