The percentage of a year's real GDP that must be forgone to reduce inflation by 1 percentage point is called the:
A)NAIRU.
B)short-run Phillips curve.
C)sacrifice ratio.
D)Okun's law.

Name: The percentage of a year's real GDP that must be forgone to reduce inflation by 1 percentage point is called the: A)NAIRU. B)short-run Phillips curve. C)sacrifice ratio. D)Okun's law.
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Question

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The sacrifice ratio measures the cost in terms of lost output (real GDP) to reduce inflation by 1 percentage point.

The Percentage of a Year's Real GDP That Must Be