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In the Traditional Model,the Cost of Lost Output for Each

Question 39

Multiple Choice

In the traditional model,the cost of lost output for each one percentage point reduction in the inflation rate is

A) 4 percent of a year's real GDP.
B) 0.25 percent of a year's real GDP.
C) 0.04 percent of a year's real GDP.
D) 25 percent of a year's real GDP.

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