The estimate of the sacrifice ratio from the Volcker disinflation is approximately:
A)5-6.
B)2.5-3.
C)1-1.5.
D)0-0.5.

Name: The estimate of the sacrifice ratio from the Volcker disinflation is approximately: A)5-6. B)2.5-3. C)1-1.5. D)0-0.5.
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The estimate of the sacrifice ratio from the Volcker disinflation is approximately 2.5-3. This means that for every one percentage point reduction in inflation, the economy would have to sacrifice 2.5-3 percentage points of output in the short run.

The Estimate of the Sacrifice Ratio from the Volcker Disinflation