Multiple Choice
Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires
A) a sacrifice of 5 percent of annual output.
B) a sacrifice of 5 percent of government spending.
C) an increase in the unemployment rate of 5 percentage points.
D) a 5 percent increase in the government budget deficit.
Correct Answer:
Verified
Correct Answer:
Verified
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