Discuss the following statements.
- The Phillips curve implies that when unemployment is high, in ation is low, and vice versa. erefore, we may ex- perience either high in ation or high unemployment, but we will never experience both together.
- As long as we do not mind having high in ation, we can achieve as low a level of unemployment as we want. All we have to do is increase the demand for goods and services by using, for example, expansionary scal policy.