The relationship between unemployment and inflation, which is known as Philip Curve, has its critical value in the macroeconomic policies of the country. In this article we are going to discuss this relationship in detail. Mathematical Derivation The typical Phillips curve tale begins with a wage Phillips curve, as Phillips himself explains it. The rate of increase in money wages is represented (gW). Operator g here and below is the "the percentage rate of growth of" of the following vector. gW=gWT-f(U) This narrative was updated during the 1970s when employees struggled to keep up with inflation (as late Abba Lerner indicated in the 1940s). The equation has modified since the 1970s to incorporate the function of inflationary expectations (or the expected inflation rate,
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