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If the Sacrifice Ratio Is Five, a Reduction in Inflation

Question 31

Multiple Choice

If the sacrifice ratio is five, a reduction in inflation from 7 per cent to 3 per cent would require


A) a reduction in output of 5 per cent.
B) a reduction in output of 15 per cent.
C) a reduction in output of 20 per cent.
D) a reduction in output of 35 per cent.

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