Country A's Long-Run Phillips Curve Is Farther to the Right

question 231

Multiple Choice

Country A's long-run Phillips curve is farther to the right than country B's. Country A and country B are identical in all other ways. In particular, they have the same money supply growth rates. In the long run as compared to country B country A will have

• A)higher unemployment and higher inflation.
• B)higher unemployment and the same rate of inflation.
• C)lower unemployment and higher inflation.
• D)None of the above is correct.

---

Definitions:

Revolutionary War

The conflict between the thirteen American colonies and Great Britain (1775-1783) leading to American independence.

Chesapeake Gentry

Refers to the affluent, land-owning class in the Chesapeake Bay region during the colonial and early United States periods, characterized by their plantation economy and reliance on indentured servants and slaves.

Scottish Settler

An individual from Scotland who relocates to another country, often in the context of historical migrations.

General Burgoyne's

Refers to British General John Burgoyne, who is best known for his role in the American Revolutionary War, particularly the 1777 Saratoga campaign which ended in a decisive defeat for his forces.