Ashik Alam Rasidul Haque

Ever heard about the Phillips Curve?
It shows the relationship between inflation and unemployment in an economy.

When unemployment is low, people have more money to spend prices go up inflation rises.
When unemployment is high, people spend less prices stay stable inflation falls.

In short:
💼 More jobs = Higher prices (High inflation)
📉 Fewer jobs = Lower prices (Low inflation)

But remember, in the long run, this link may not hold true. Sometimes both inflation and unemployment can be high that’s called stagflation.

Simple Meaning: The Phillips Curve helps us understand how price rise and job levels are connected in an economy.