Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is: a. 2
b. 1
c. 0.5
d. none of the above

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

its simple as this, microeconomics is the study of economics at an individual, group or company level, macroeconomics on the other hand, is the study of a national economy as a whole.

hope it =^-^=

answer; property tax payment made in july and december;