Avila ,Angelica U.

1BSA – ABM5

Assignment Nos.15 The Short-Run Tradeoff Between Inflation and Unemployment

1. Explain the short-run trade off and why there is a trade-off between inflation and
unemployment?

2. In what way does the Phillips Curve relate to the model of aggregate demand
and aggregate supply? Explain your answer.

3. What do you think is better to control, the inflation or unemployment? Justify your
answer.