According to the Phillips curve, in the short run, if policymakers choose an expansionary policy to lower the rate of unemployment, the economy will experience an increase in inflation.

Question

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The Phillips curve shows a negative relationship between unemployment and inflation in the short run. Therefore, if policymakers choose to implement expansionary policies like increasing government spending, cutting taxes, or reducing interest rates, it will lead to a lower rate of unemployment but higher inflation in the short run.

According to the Phillips Curve, in the Short Run, If