10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,the sacrifice ratio isa. 1.b. 2.c. 3.d. None of the above is correct.13. Means-tested government benefits base benefits ona. a household's wealth and are an incentive to save.b. a household's wealth and are a disincentive to save.c. the current interest rate and are an incentive to save.d. the current interest rate and are a disincentive to save.14. Which of the following is correct?a. No forms of capital income are taxed twice.b. The tax code cannot be rewritten to provide greater incentive to save.c. Means-tested benefits increase the incentive to save.d. There is a correlation between national savings rates and measures of economic well-being.16. Which of the following does the U.S. currently have?a. means-tested government benefits and tax laws that tax capital income only onceb. means-tested government benefits and tax laws that tax some capital income twicec. tax laws that tax capital income only once, but not means-tested government benefitsd. tax laws that tax some capital income twice, but not means-tested government benefits

The sacrifice ratio is an economic concept that measures the cost of reducing inflation through…

10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is a. 1. b. 2. c. 3. d. None of the above is correct.

10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is a. 1. b. 2. c. 3. d. None of the above is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

Question

10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by
3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,
the sacrifice ratio is
a. 1.
b. 2.
c. 3.
d. None of the above is correct.
13. Means-tested government benefits base benefits on
a. a household's wealth and are an incentive to save.
b. a household's wealth and are a disincentive to save.
c. the current interest rate and are an incentive to save.
d. the current interest rate and are a disincentive to save.
14. Which of the following is correct?
a. No forms of capital income are taxed twice.
b. The tax code cannot be rewritten to provide greater incentive to save.
c. Means-tested benefits increase the incentive to save.
d. There is a correlation between national savings rates and measures of economic well-being.
16. Which of the following does the U.S. currently have?
a. means-tested government benefits and tax laws that tax capital income only once
b. means-tested government benefits and tax laws that tax some capital income twice
c. tax laws that tax capital income only once, but not means-tested government benefits
d. tax laws that tax some capital income twice, but not means-tested government benefits

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