If the sacrifice ratio is 4, then reducing the inflation rate from 9 percent to 5 percent would require sacrificing
a. 4 percent of annual output.
b. 8 percent of annual output.
c. 12 percent of annual output.
d. 16 percent of annual output.
d
You might also like to view...
What would happen to measured GDP if more people started hiring workers to do household chores such as cooking and cleaning?
What will be an ideal response?
If the rate of inflation in Country A is higher than in Country B, then ________
A) in nominal terms, country A's currency should depreciate B) in nominal terms, country B's currency should depreciate C) the law of one price will not hold D) purchasing power parity does not apply
A requirement that the budget be balanced each and every year would worsen the severity of economic fluctuations by preventing which of the following from working?
a. budget surpluses b. budget deficits c. automatic stabilizers d. manual stabilizers
As viewed by economists, a public good ______.
a. can be controlled only by the government b. is hard to prevent people from using c. cannot be physically touched or moved d. is purchased with tax revenue