Introduction to principles of macroeconomics/Price stability and unemployment

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Price stability and unemployment

Unemployment rate calculation

There is an inherent tension between price stability, or inflation, and unemployment,

While reading, consider the following questions:

1. What are the tensions between controlling either inflation or unemployment?
2. Is there an acceptable amount of inflation or unemployment if the economy as a whole is doing well?

• Read Chapter 14: Unemployment vs. Inflation from John Petroff's "Macroeconomics text book, which provides definition and insights into the tension between controlling inflation or unemployment.

Having read the short chapter jot down any of your reflections or thoughts on this subject.