Conclusion of relationship between Inflation and

Unemployment
We can conclude in the end that relationship between inflation and level of
unemployment is absolutely viable at the present scenario. Phillips Curve is considered
to be the best possible technique exploring this important relationship. There had been
few changes that we had seen in Phillips curve that earlier there was just a concept of
Short Run Phillips Curve but it had few restrictions that there may be increase in wages
and money illusion to the people. Hence in order to remove these loopholes, Long Run
Phillips Curve was generated which covers the situation of wage increase and money
illusion as well. Unemployment and Inflation are two important macroeconomic
techniques. In order to have a look the economic situation of any country, it is very
much important to look forward rate of inflation of its economy and natural level of
unemployment in the country. As far as economic growth of any country is concerned,
as level of unemployment in its economy will be low, there will be more growing
economic condition in the country. Hence at last we can simply conclude that
unemployment and inflation are related and this relationship is explored by Phillips
curve which must be considered as one of major victory in terms of macroeconomics.