The next questions refer to the following.
Suppose that, in the absence of supply shocks, the inflation-unemployment relationship is inflation rate = expected inflation rate + 2(natural rate of unemployment - actual unemployment rate).
-The sacrifice ratio in this case is
A) 2
B) 1
C) .5
D) .01
E) .005

Question

Quizplus · Accepted Answer

The Answer of The next questions refer to the following.
Suppose that, in the absence of supply shocks, the inflation-unemployment relationship is inflation rate = expected inflation rate + 2(natural rate of unemployment - actual unemployment rate).
-The sacrifice ratio in this case is
A) 2
B) 1
C) .5
D) .01
E) .005

The Next Questions Refer to the Following