If the sacrifice ratio is five, it means that in order to reduce inflation by one percentage point, the economy will experience _____.
A) a reduction of annual output by five percentage points
B) a rise of annual output by five percentage points
C) a reduction of annual output by 0.20 percentage points
D) a rise of annual output by 0.20 percentage points
Correct Answer:
Verified
Q21: The natural rate of unemployment is:
A)the non-acceleration
Q22: A vertical long-run Phillips curve occurs at
Q23: Disinflation is defined as:
A)a zero rate of
Q24: If the long-run Phillips curve shifts to
Q25: An increase in expected inflation:
A)shifts the short-run
Q27: According to the theory of rational expectations,
Q28: If the sacrifice ratio is 5 per
Q29: If the sacrifice ratio is 5 per
Q30: The increase in oil prices in the
Q31: The natural rate of unemployment is:
A)the socially
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