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Find misery index of a certain nation whose statistics is given as follow. And also find the amount of GDP reduction in order to reduce
Find misery index of a certain nation whose statistics is given as follow. And also find the amount of GDP reduction in order to reduce In a certain country short run Phillips curve is given as inflation rate to 2.0% from 4.0%. same. Assume all other conditions are the (1)Unemployment rate is 8.5% (2)Inflation rate is 4.0% (3)Sacrifice ratio is 3 (4)GDP is $1,000 million (5)Unemployment rate of young men is 10.5% (6)Expected inflation rate is 3.0% Hint: The sacrifice ratio measures the amount of GDP that must be foregone in order to reduce inflation by a certain amount. If the sacrifice ratio is five, it means that for every 1 percentage point reduction in inflation, the economy would experience a 5% decrease in GDP
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