What is sacrifice ratio? (Answer in one sentence)
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The sacrifice ratio is an economic ratio that measures the effect of rising and falling inflation on a country's total production and output. Costs are associated with the slowing of economic output in response to a drop in inflation. ... The ratio measures the loss in output per each 1% change in inflation.
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It is an economic ratio which measures the effect of raising and falling inflations of country’s total out put and production.
This ratio measures the loss in output per every 1%change in inflation.
If the prices fell then the companies reduce producing and they may also cut back production.
On seeing the sacrifice ratios of earlier government can understand what factors can lead effect on their policies.
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