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    Principles of Macroeconomics Study Set 8
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    Exam 22: The Short Run Trade Off Between Inflation and Unemployment: The Cost of Reducing Inflation
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    If a Central Bank Reduces Inflation 2 Percentage Points and This
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If a Central Bank Reduces Inflation 2 Percentage Points and This

Question 65

Question 65

Multiple Choice

If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year,the sacrifice ratio is


A) 5/2.
B) 3/2.
C) 2/3.
D) 2/5.

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