Stagflation

Short-run Phillips curve (SRPC): The short-run Phillips curve shows an inverse relationship between inflation and unemployment in the short run, suggesting that reducing unemployment can lead to higher inflation temporarily.

Long-run Phillips curve (LRPC): The long-run Phillips curve illustrates that there is no permanent trade-off between inflation and unemployment in the long run. It suggests that any attempt to reduce unemployment below its natural rate will only result in higher inflation.

Demand-pull inflation: Demand-pull inflation occurs when aggregate demand exceeds aggregate supply, leading to upward pressure on prices. In stagflation, this type of inflation may be present alongside high levels of unemployment.