Unit 3.3 · Macroeconomic Objectives
Unemployment-Inflation Trade-off
AO3AO4HLDiagram required
Syllabus Requirement
Short-run and long-run Phillips curve illustrating the trade-off between unemployment and inflation (HL only).
Assessment Objectives
AO3Synthesis and Evaluation
AO4Use of Appropriate Skills
HLThis topic is assessed at Higher Level only.
Summary
This topic examines the trade-off between unemployment and inflation, highlighting how these two macroeconomic objectives can influence each other. Understanding this relationship is important for analyzing economic policies and their effects on the economy.