=+ 4. The sacrifi ce ratio is the accumulated loss in output that results when the central

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=+ 4. The sacrifi ce ratio is the accumulated loss in output that results when the central bank lowers its target for infl ation by 1 percentage point. For the parameters used in the text simulation (see the FYI box), what is the implied sacrifi ce ratio?

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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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