If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?

Related Mcqs:

The misery index Which some commentators suggest measures the health of the economy, is ?

A. The sum of the growth rate of output and the inflation rate B. The sum of the natural rate of unemployment and the actual rate of unemployment C. The sum of the inflation rate and the central bank’s refinancing rate D. The sum of the unemployment rate and the inflation rate...

The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

A. decreases unemployment B. decrease growth C. increases unemployment D. decreases inflation...

If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

A. is vertical B. is negatively sloped C. has a slope that is determined by how fast people adjust their price expectations D. is positively sloped...

When actual inflation exceeds expected inflation ?

A. Unemployment is equal to the natural rate of unemployment B. People will reduce their expectations of inflation in the future C. Unemployment is greater than the natural rate of unemployment D. Unemployment is less than the natural rate of unemployment...

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

A. H B. c C. d D. F...