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Suppose That an Economy Is Currently Experiencing 10 Percent Unemployment

Question 225

Multiple Choice

Suppose that an economy is currently experiencing 10 percent unemployment and 15 percent inflation.If in the process of bringing inflation down by 2 percent real GDP falls by 4 percent,the sacrifice ratio is


A) 5 percent.
B) 2 percent.
C) 12 percent.
D) None of the above is correct.

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