Suppose the Current Inflation Rate Is 4% and the Bank

Suppose the current inflation rate is 4% and the Bank of Canada wants to reduce it to 2%,knowing that the sacrifice ratio is 2.Apparently,the Bank of Canada is prepared to accept a decline of real GDP of ________ as the cost of disinflation.

A) 1% of potential output
B) 0.5% of potential output
C) 2% of potential output
D) 4% of potential output
E) 8% of potential output