what is Phillips curve please response with you own sentenc

what is Phillips curve ? please response with you own sentences

Solution

Phillips curve is an economic concept that shows there is an inverse relationship between inflation and unemployment rate, i.e. When an economy faces growth and price level or, inflation rate increases, the economy creates more new jobs and unemployment declines. The opposite is true when inflation Declines. However, short run Phillips curve shows there is trade off between inflation and unemployment rate(SRPC is therefore downward sloping curve), but long run phillips curve shows there is no relationship between inflation and unemployment and LRPC is vertical line at the Natural rate of unemployment.