According to the ________ Phillips curve(s), the unemployment rate and the inflation rate are negatively related.

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According to the short-run Phillips curve, there is a negative relationship between the unemployment rate and the inflation rate. In the short-run, when unemployment decreases, firms have to compete more for workers, leading to higher wages and higher production costs. This increase in costs is passed on to consumers in the form of higher prices, leading to inflation. As such, in the short-run, there is a trade-off between unemployment and inflation.

According to the ________ Phillips Curve(s), the Unemployment Rate and the Inflation