Which is the most correct statement about the relationship between inflation and unemployment?

Question

Quizplus · Accepted Answer

In the short run, reducing inflation is associated with rising unemployment, according to the Phillips curve relationship. When inflation is reduced by decreasing demand through contractionary monetary or fiscal policy, there is a short-term increase in unemployment as businesses and individuals adjust to the lower levels of economic activity. In the long run, however, there is no stable trade-off between inflation and unemployment, as the economy eventually returns to its natural rate of unemployment regardless of the inflation rate.

Which Is the Most Correct Statement About the Relationship Between