Explain y would it be difficult to maintain a low rate of inflation as the economy approaches full employment?

- philips curve AD/AS


- define theory and method used





Explain why a government might find it difficult to maintain a low rate of inflation as the economy approaches full employment?

Explain y would it be difficult to maintain a low rate of inflation as the economy approaches full employment?
Inflation or deflation effects employment,but I've seen little or no reason to think that high employment causes inflation.


Government creating money and spending money causes inflation.Look at LBJ and the 1960s,70s and even into the 80s.


Productivity and free trade keep inflation low.Look at the 1980s,90s and 2000s.

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