MGT Notes

Reference, ‘Principles of Economics,’ by N. Gregory Mankiw, 3e, Pg 13

The Phillips Curve describes the short run tradeoff between inflation and unemployment. It states the inverse relationship between them. Government policies tend to push both in different directions over a period of time. Another related measure is the business cycle which captures the fluctuations in economic activity by mesuring the number of people employed or the level of prodution of goods and services.