Final answer:
The Phillips curve illustrates the tradeoff between unemployment and inflation in economics. Keynesians advocate for an acceptable tradeoff between the two, while neoclassical economists argue that no such tradeoff exists.
Step-by-step explanation:
In economics, there is a concept known as the Phillips curve, which illustrates the tradeoff between unemployment and inflation. The curve shows that when one is higher, the other must be lower. For example, if the inflation rate is high, the unemployment rate tends to be low, and vice versa.
Keynesians believe that there can be an acceptable tradeoff between unemployment and inflation when combating a recession. They argue that implementing policies to reduce unemployment may lead to a temporary increase in inflation.
On the other hand, neoclassical economists argue that there is no long-term tradeoff between unemployment and inflation. They believe that any short-term gains in reducing unemployment through active policy will eventually result in higher inflation.