Multiple Choice
The sacrifice ratio is
A) the amount of output lost when the inflation rate is reduced by one percentage point.
B) the percentage reduction in inflation when output falls one percentage point below potential.
C) the percentage change in employment when output declines by one percentage point.
D) the number of percentage points that the unemployment rate rises when output declines by one percentage point.
Correct Answer:
Verified
Correct Answer:
Verified
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