Relevance of the Phillips Curve? (1 Viewer)

[d_a_n_z]

Hey - i think i understand the Short run Phillips curve - which basically says that inflation and unemployment are at a trade off to one another. But how is this relevant? What sort of answer woudl i incorporate this information in?
And also - why is the long run philliips curve a straight line?

 

[fantasy27]

wouldn't you incorporate this when you are writing an essay about unemployment.. we bought it up when talking about the 'natural rate of unemployment'

i think in another topic, phillips curve comes back again

 

[sk8ie_boi]

Normally the exam questions will ask you how does Unemployment relates to Inflation, then you just mention the Short Term Phillips Curve...

 

[d_a_n_z]

T h a n k s !