The Phillips curve shows the relationship between

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The Phillips curve shows the relationship between the unemployment rate and inflation rate. It suggests that when unemployment is low, inflation tends to be high, and when unemployment is high, inflation tends to be low. This relationship is based on the idea that as unemployment decreases, workers become scarcer and employers offer higher wages to attract workers, leading to an increase in the cost of production and ultimately higher prices for goods and services. Conversely, when unemployment increases, workers become more plentiful and wages tend to decrease, leading to lower production costs and ultimately lower prices for goods and services.

The Phillips Curve Shows the Relationship Between