View Single Post
  #7  
Old Monday, June 28, 2010
hina_a's Avatar
hina_a hina_a is offline
Junior Member
 
Join Date: Jul 2008
Location: Bhawalpur, punjab , Pakistan
Posts: 22
Thanks: 20
Thanked 22 Times in 14 Posts
hina_a is on a distinguished road
Default

inflation and unemployment are two intricately linked concepts, there are two possible explanations of these concepts, one in the short run and another in the long run, in the short term the inverse relationship between inflation and unemployment does exist i.e when inflation is on the higher side unemployment is on the lower side and vice versa. if u see any short term Philips curve u can see this relationship as a declining curve.
In the long run however the economists had not find any significant relationship between the two, so if u see any long term Philips curve u will see a vertical line meaning that the it is not elastic.
Reply With Quote
The Following User Says Thank You to hina_a For This Useful Post:
shahzad but (Thursday, May 19, 2011)