what-does-a-sacrifice-ratio-of-4-indicate-in-terms-of-gdp-loss-and-inflation-red

Question

What does a sacrifice ratio of 4 indicate in terms of GDP loss and inflation reduction?

Accepted Answer

4% GDP loss for every 1% reduction in inflation.

Answer

4% GDP gain for every 1% reduction in inflation.

Answer

1% GDP gain for every 4% reduction in inflation.

Answer

1% GDP loss for every 4% reduction in inflation.