In this article we will discuss about the Phillips curve to study the relationship between unemployment and inflation. The Phillips curve examines the relationship between the rate of unemployment and the rate of money wage changes. Known after the British economist A.W. Phillips who first identified it, it expresses an inverse relationship between the rate of unemployment and the rate [...]
Let us make an in-depth study of the Phillips Curve and Inflation-Unemployment Trade-Off. Two short-run macroeconomic goals are reasonable price level stability (low inflation) and high employment (low unemployment). But economic life is full of trade-offs. There is often a conflict between price stability and high employment. Let us suppose that policymakers adopted stabilisation (monetary and fiscal policies) to expand [...]
Let us make an in-depth study of the Phillips Curve and Inflation-Unemployment Trade-Off. Two short-run macroeconomic goals are reasonable price level stability (low inflation) and high employment (low unemployment). But economic life is full of trade-offs. There is often a conflict between price stability and high employment. Let us suppose that policymakers adopted stabilisation (monetary and fiscal policies) to expand [...]