According to the Phillips curve, what is the relationship between inflation and unemployment in the short run?

The Phillips curve illustrates an inverse relationship between inflation and unemployment in the short run, indicating that when unemployment decreases, inflation tends to increase, and vice versa. This concept stems from the idea that lower unemployment leads to higher demand for goods and services, driving up prices as businesses respond to increased spending by raising wages to attract employees from a limited labor pool. Conversely, higher unemployment typically corresponds to less consumer spending, which can result in lower inflation rates as businesses face reduced pricing power. This relationship is particularly pertinent in short-term analyses of economic fluctuations, as various factors such as policy decisions and economic conditions can influence it. The Phillips curve provides valuable insight for policymakers in balancing inflation control and employment levels, especially during economic cycles.