If the Fed reduces inflation 1 percentage point and this makes output fall 5 percentage points and unemployment rises 2 percentage points for one year, the sacrifice ratio is

a. 1/5.
b. 2.
c. 5/2.
d. 5.


d

Economics

You might also like to view...

The Second Bank of the United States rose to prominence under the leadership of:

a. Alexander Hamilton. b. Andrew Jackson. c. Henry Clay. d. Nicholas Biddle.

Economics

The federal government could stimulate investment spending by

A. phasing out the depreciation allowance on corporate income taxes. B. reducing subsidies to businesses. C. reinstating the windfall profits tax. D. reducing the tax rate on capital gains.

Economics

The opportunity cost of going to college for a student receiving a scholarship

A. is the risk of dropping out. B. is the expenses for food and clothing that she purchases while in college. C. is zero because she does not have to pay tuition. D. is the income that she would have earned if she did not go to college.

Economics

When combined, between now and 2035, the annual underfunded amounts of Social Security and Medicare will

A. fall from 4.5% to 1%. B. grow from 1% to 4.5%. C. remain at about 14%. D. fall from 30% to 14%.

Economics