What is the concept of the output-inflation tradeoff?

What is the concept of the output-inflation tradeoff?

The concept of the output-inflation tradeoff refers to the relationship between the level of output and the rate of inflation in an economy. It suggests that there is a tradeoff between these two variables, meaning that when output is high, inflation tends to be higher, and when output is low, inflation tends to be lower. This tradeoff is often depicted by the Phillips curve, which shows the inverse relationship between unemployment and inflation. The tradeoff implies that policymakers face a dilemma when trying to achieve both high output and low inflation, as stimulating output may lead to higher inflation, while reducing inflation may result in lower output.