What Is The Relationship Between Inflation And Unemployment?


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amber Jhon answered
There is an inverse relationship between inflation and unemployment. It can be more explained with the help of a Phillips curve. A Phillips curve shows that if unemployment is plotted on x-axis and inflation is plotted on y-axis then a downward curve is obtained. By the term, inverse relationship it is meant that if inflation increases in an economy then unemployment decreases and vice versa. Classic view of inflation and Keynesian view of inflation also advocates the same point and for more details click on the link:

Inflation and unemployment

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