What does the short-run Phillips Curve primarily illustrate in macroeconomics?

💡 Explanation:

The short-run Phillips Curve illustrates the inverse relationship, or trade-off, between the rate of inflation and the rate of unemployment in an economy. In the short run, policymakers can often reduce unemployment by stimulating aggregate demand, but this action tends to lead to higher inflation, and vice versa. This relationship breaks down in the long run as expectations adjust, but the short-run curve captures this immediate policy dilemma.