Explain Why There Is No Tradeoff Between Inflation and Unemployment

question 25

Essay

Explain why there is no tradeoff between inflation and unemployment in the short run or the long run.

---

Definitions:

Marginal Benefit

The enhancement in satisfaction or utility that comes from acquiring or making an additional unit of a product or service.

Pollution Control

The implementation of measures to reduce or eliminate the emission of pollutants into the environment.

Pollution Abatement

Measures and efforts taken to reduce, control, or eliminate pollution from a particular source.

Negative Externalities

Costs that are suffered by a third party as a result of an economic transaction that they were not directly involved in.