For tutoring information, call (954) 762-7742 or make an appointment for SAT, GMAT, CPT, ACT, Economics, Algebra, Statistics, Calculus, Spanish, French, English, or any other class.
Now, the top Miami educational investment
to change your grades!
Quality & academic excellence.
Students, click here for a Free Registration.
Macroeconomics: Sacrifice Ratio
The number of percentage points of a year's real GDP that must be forgone to reduce inflation by 1 percentage point.
In the US:
- Reducing inflation by 1% requires a sacrifice of 5% GDP
- By Okun's law increasing unemployment by 1% translates into a a 2% GDP
- Reducing inflation by 1% requires a 2.5% increase of cyclical unemployment.
Sacrifice ratio tend to be lower if people have lower rational expectations rather than adaptive expectations.
According to Macroeconomics by Gregory Mankiw
Make an appointment
Tell us your comments or questions about this topic for FREE.
For homeworks or test preparation, we'll reply by e-mail with a proposal fee for your approval.