Principles of Economics ,,,,,,,,,,,,,,

Principle (10) Society Faces a Short-run Tradeoff Between Inflation and Unemployment:

* Relationship between Inflation & Unemployment is negative;

1- When Inflation up Unemployment down and vise-versa.
2- Sometimes this relationship be a positive one “when Inflation up Unemployment up” which occurred
only in the least underdevelopment countries like Sudan.
3- This scarce positive relationship between Inflation and Unemployment used to be called “Stagflation”.
4- The current economical situation in Sudan is typical Stagflation.

* The Phillips Curve illustrates the tradeoff between inflation and unemployment on the way that when
inflation up unemployment down and vise-versa. It’s usually a short-run tradeoff!

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