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Which of the Following Scenarios Is Consistent with Typical Estimates

Question 73

Multiple Choice

Which of the following scenarios is consistent with typical estimates of the sacrifice ratio?


A) Inflation is reduced from 4 percent to 1 percent,and annual output falls by 10 percent.
B) Inflation is reduced from 6 percent to 4 percent,and annual output falls by 10 percent.
C) Inflation is reduced from 8 percent to 5 percent,and annual output falls by 9 percent.
D) Inflation is reduced from 3 percent to 2 percent,and annual output falls by 3 percent.

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