The Phillips Curve in Lowland Takes the Form $\pi$ = 04 -5 (U -

Essay

The Phillips Curve in Lowland takes the form $\pi$ = .04 - .5 (u - .05),where $\pi$ is the actual inflation rate and u is the unemployment rate.The Phillips curve in Highland takes the form $\pi$ = .08 - .5 (u - .05).The current unemployment rate in both countries is 9 percent (.09).a.Explain the similarities in the Phillips curves in Highland and in Lowland.b.Explain the difference in the Phillips curves in Highland and in Lowland.c.In which country will policymakers face a bigger tradeoff if they try to reduce unemployment in the short run?