A phillips curve shows the tradeoff between unemployment and inflation, therefore if unemployment will be high, inflation will be low; if unemployment will be low, inflation will be high.
When the central bank increases rate of inflation so that the unemployment is pushed down at lower rate, it will cause an initial shift along the short-run Phillips curve.
When the worker and consumer expectations about inflation adapt to the new environment, the Phillips curve itself can shift outward in the long run.
The Phillips curve shows that inflation and unemployment have an inverse relationship. Higher inflation means lower unemployment and vice versa.
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