Relationship between Unemployment and Inflation

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Relationship between Unemployment and Inflation ECO 203 Principles of Macroeconomics Unemployment and inflation are an economys two most important macroeconomic issues. The federal governments fiscal policy and the Federal Reserves monetary policy try to maintain both a low unemployment rate around a natural rate and a low inflation rate around 2%.In your Final Paper, Evaluate the historical relationship between unemployment and inflation. (hint: You may start from A.W. Phillipss finding of the relationship between unemployment and inflation.) Distinguish between the short-run and the long-run in a macroeconomic analysis. Why is the relationship between unemployment and inflation different in the short-run and the long-run? Assess the recent 20-year U.S....

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