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Sagot :
In the short run, higher unemployment leads to lower inflation, and lower unemployment leads to higher inflation, so there is a trade-off.
Society faces a short-run tradeoff between unemployment and inflation. If policymakers enlarge combination demand, they can lower unemployment, however simplest on the price of better inflation. in the event that they settle aggregate demand, they can lower inflation, however at the fee of temporarily higher unemployment.
Consistent with economists, there may be no trade-off between inflation and unemployment in the end. Decreases in unemployment can result in increases in inflation, however best in the brief run. In the end, inflation and unemployment are unrelated.
In economics, inflation is a general increase in the prices of products and services in an economic system. While the general price level rises, every unit of currency buys fewer items and services; consequently, inflation corresponds to a discount in the buying energy of money.
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