An economy has a current inflation rate of 7%. If the central bank wants to reduce inflation to 4% and the sacrifice ratio is 2, then how much annual output must be sacrificed in the transition?
a. 10%
b. 8%
c. 6%
d. None of the above is correct.
c
You might also like to view...
Given the information in Scenario 4.3, erasers and good b, are:
A) substitutes. B) complements. C) completely unrelated. D) normal. E) inferior.
When a player in a game adopts a strategy which always yields the highest benefit regardless of what the other player does, that player is using a(n)
A) opportunistic strategy. B) dominant strategy. C) tit-for-tat strategy. D) aggressive strategy.
The two largest economies in the world in 2012 were:
A. China and the U.S. B. Japan and the U.S. C. England and the U.S. D. China and Germany.
Refer to the table below. Marginal product is largest for the:
The question is based on the following table that provides information on the production of a product that requires one variable input.
A. Second unit of variable input
B. Third unit of variable input
C. Seventh unit of variable input
D. Ninth unit of variable input