The Phillips curve suggests that if we want to lower the inflation rate, we must accept a higher unemployment rate in return.

Question

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The Phillips curve is a theory stating that there is a trade-off between inflation and unemployment. It suggests that when unemployment is low, inflation tends to be high, and when unemployment is high, inflation tends to be low. Therefore, to lower the inflation rate, we may need to accept a higher unemployment rate in the short run.

The Phillips Curve Suggests That If We Want to Lower