The Sacrifice Ratio Measures The

Multiple Choice

The sacrifice ratio measures the:

A) number of percentage points of the money supply that must be reduced to reduce inflation by 1 percentage point.
B) extra taxes that must be paid to balance the budget.
C) number of months of real gross domestic product (GDP) that must be foregone to reduce the inflation rate by 1 percentage point.
D) percentage of a year's real gross domestic product (GDP) that must be foregone to reduce inflation by 1 percentage point.