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Is there any relation between inflation and unemployment?
The Phillips Curve was a relationship among unemployment and inflation discovered by Professor A.W. Phillips. He found that there was a trade-off among unemployment and inflation, so that any attempt by governments to decrease unemployment was likely to lead to enhanced inflation. This relationship was seen by Keynesians as a justification of their policies. Though, in the 1970s the curve began to break down as the economy suffered from unemployment and inflation rising together (stagflation).
The price of oil increases because OPEC reduces oil production
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