If the cumulative loss in real GDP when the central bank conducts monetary policy to reduce the inflation rate from 7% to 2% is 10%
If the cumulative loss in real GDP when the central bank conducts monetary policy to reduce the inflation rate from 7% to 2% is 10% of full-employment output, then the sacrifice ratio for the economy for disinflation is 0 7 O 10 0 2 0 5
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