Historically, there has been a positive correlation between changes in the rate of inflation and the percentage difference between real and potential GDP.

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Quizplus · Accepted Answer

This correlation is known as the Phillips Curve, which shows that as unemployment decreases (and employment increases), inflation tends to increase. This relationship was first observed by economist A.W. Phillips in the 1950s and has been a topic of study and debate among economists for decades.

Historically, There Has Been a Positive Correlation Between Changes in the Rate