How Did Slavery Stunt the Development of Other Important Industries

question 7

Multiple Choice

How did slavery stunt the development of other important industries and institutions in the South?

• A) Slavery was so controversial that Northerners did not want to do business with the South.
• B) Wealthy people invested all of their money in slavery and nothing else.
• C) The plantation economy required rural settlements and deterred the development of great cities.
• D) Southerners agreed to rely on the North for manufacturing and education in exchange for their reliance on southern goods.

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Definitions:

Wages

Monetary compensation paid by an employer to an employee in exchange for work performed.

Long-Run Phillips Curve

A graphical representation suggesting that in the long term, there is no trade-off between inflation and unemployment, showing vertical at the natural rate of unemployment.

Unemployment Rate

The percentage of those in the labor force who are not working but are in search of employment.

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, not zero unemployment.