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If the Sacrifice Ratio Is 4,then Reducing the Inflation Rate

Question 6

Multiple Choice

If the sacrifice ratio is 4,then reducing the inflation rate from 9 percent to 5 percent would require sacrificing

A) 4 percent of annual output.
B) 8 percent of annual output.
C) 12 percent of annual output.
D) 16 percent of annual output.

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