A curve depicting the long-run relation between inflation and unemployment, showing the interplay of expectations and economic performance over the long-term.
The Phillips Curve describes the inverse relationship between inflation and unemployment. This economic model initially depicted the rate of increase in nominal wages against unemployment and has evolved to incorporate inflationary expectations. It helps economists understand the short-term trade-offs between inflation and unemployment and the long-term implications where the expected inflation rate equals the actual rate.
A comprehensive exploration of Potential Output, its definitions, historical context, models, importance, and applications in economics.
Explore the non-accelerating inflation rate of unemployment (NAIRU), the critical unemployment threshold before inflationary pressures begin to escalate, including formulas, implications, and historical context.
