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It's not about prices but about the rate at which wages increase
In [[economics]], the '''Phillips curve''' is a graphical representation of the idea that there exists an inverse relationship between [[inflation]] and [[unemployment]]. In a standard Phillips curve diagram, the inflation rate or price level is plotted on the vertical axis, and the rate of unemployment on the horizontal.
In [[economics]], the '''Phillips curve''' is a graphical representation of the idea that "wages tend to rise faster when [[unemployment]] is low." <ref>[http://www.britannica.com/EBchecked/topic/456596/Phillips-curve Encyclopedia Britannica]
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there exists an inverse relationship between [[inflation]] and [[unemployment]]. In a standard Phillips curve diagram, the inflation rate or price level is plotted on the vertical axis, and the rate of unemployment on the horizontal.
[[File:NAIRU.png|right|280px]]
[[File:NAIRU.png|right|280px]]