1714EconomicsMedium
If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require?
Aa reduction in output of 20 percent
Ba reduction in output of 35 percent
Ca reduction in output of 15 percent
Da reduction in output of 5percent
Correct answer
A. a reduction in output of 20 percent
Explanation
The correct answer is a reduction in output of 20 percent.