If the sacrifice ratio is five, a reduction in inflation from 7 perce – McqOptions

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1.	If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
A.	a reduction in output of 20 percent
B.	a reduction in output of 5percent
C.	a reduction in output of 15 percent
D.	a reduction in output of 35 percent
Answer» B. a reduction in output of 5percent

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