Suppose that an economy is currently experiencing 10 percent unemployment and 15 percent inflation. If in the process of bringing inflation down by 2 percentage points, real GDP falls by 6 percent for a year, the sacrifice ratio is

a. 5.
b. 2.
c. 12.
d. None of the above is correct.

d

Economics

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If productivity growth equals 3.0 percent, the contribution from capital growth 1.2 percent and the contribution from labor growth 2.0 percent, then output growth must equal ________

A) 2.2 percent B) 4.2 percent C) 6.2 percent D) 7.2 percent

Economics

Elasticity along a downward sloping linear demand curve

A) is constant and equal to the slope of the curve. B) is constant and equal to the slope times the ratio of price to quantity. C) changes along the curve. D) does not vary with price unless the good is expensive.

Economics