Discuss the following statements.
a. The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may ex- perience either high inflation or high unemployment, but we will never experience both together.
b. As long as we do not mind having high inflation, we can achieve as low a level of unemployment as we want. All we have to do is increase the demand for goods and services by using, for example, expansionary fiscal policy.