Why is there this inflation unemployment trade off. What really is the inflation and unemployment relationship trade off or what is the relation between inflation and unemployment trade off?. Why is it that inflation rises as unemployment falls atleast in the short term. Can both inflation and unemployment ever decrease together or decline together?
We explore in the is presentation reasons for the Inflation Unemployment Trade off and why inflation increases with growth or decline in unemployment. In this inflation unemployment relationship we also explore if it is possible from inflation and unemployment to both decrease (reduce) together or decline together in this relation between inflation and unemployment trade off . We shall evaluate various scenarios in this regard to establish the relation between inflation and unemployment.
For some more information on inflation like:
Is inflation Necessary or Market Failure, link below:
Effect of Inflation on the Economy:
Effect of Fiscal Deficit on Inflation a scenario that utilizes the relation between inflation and unemployment:
Effect of Money Printing on Inflation: