Evaluate the relationship between unemployment and inflation in the context of the Phillips Curve. Provide a detailed
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Evaluate the relationship between unemployment and inflation in the context of the Phillips Curve. Provide a detailed explanation of the Phillips Curve concept and how it demonstrates the trade-off between unemployment and inflation. Discuss the validity of this relationship in the short run versus the long run, citing historical economic examples. Also, explore how factors like expectations and supply shocks can influence this trade-off and potentially lead to scenarios like stagflation.
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