Q. The term Sacrifice Ratio, recently seen in news, is used to-

[A] Measure the rise in inflation due to economic growth

[B] Calculate the balance of trade of a country

[C] Measure the direct economic cost of bringing down inflation

[D] Measure income inequality in an economy

Answer: C
Notes:

Explanation: Sacrifice Ratio indicates the percentage loss in real GDP required to reduce inflation by 1%, reflecting the trade-off between inflation control and economic growth.

Source- TH

Blog
Academy
Community