Countries in which wages adjust rapidly to changes in the supply and demand for labour are likely to have ________ sacrifice ratio.
A)an infinite
B)a high
C)a low
D)a negative

Question

Quizplus · Accepted Answer

A low sacrifice ratio means that a country can quickly adjust to policy changes without experiencing significant output losses. When wages adjust rapidly to changes in the supply and demand for labor, this means that the labor market is efficient in responding to changes, which can help minimize the costs of disinflationary policies and ultimately lead to a lower sacrifice ratio.

Countries in Which Wages Adjust Rapidly to Changes in the Supply