Some Keynesian economists believed that at the cost of some inflation, the government could reduce the unemployment rate to a permanently low rate.

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This belief was based on the idea that increasing demand through government spending could create jobs and stimulate economic growth, even if it meant some inflation. This became known as the Phillips Curve, which showed an inverse relationship between inflation and unemployment. However, this theory has been disputed in recent years and some economists argue that there may be limits to how low unemployment can go before inflation becomes a concern.

Some Keynesian Economists Believed That at the Cost of Some