As I suggested previously, Phillips Curve emphasizes the modification of the unemployment rate and its influence on the price inflation. It also impacts on the labor demand because of the government increased spending. Nash also advocates for an accurate fall of unemployment pool. Consequently the corporations or businesses contend for smaller number of workers by uplifting ostensible remuneration. Added to that, employees have better agreement options to demand an increase in nominal wages since earnings costs will grow.
Despite the positive side of Phillips Curve, one may ague that It that policy-makers ill-use it to trade off between unemployment and inflation. This is to say, the government take advantage in the concept to have a deep
Despite the positive side of Phillips Curve, one may ague that It that policy-makers ill-use it to trade off between unemployment and inflation. This is to say, the government take advantage in the concept to have a deep