Can an economy maintain high output growth, low unemployment, and ...

[KimWrice]

Can an economy maintain high output growth, low unemployment, and low inflation at the the same time? Explain.
 
  What will be an ideal response?

Question 2

Explain why the Phillips curve on average is downward sloping.
 
  What will be an ideal response?

[carojassy25]

Answer to Question 1

It would be very hard to achieve the three objectives at the same time. High output growth leads to low unemployment, which is likely to put pressure on inflation.

Answer to Question 2

When unemployment becomes very low, the economy is likely to overheat and this will lead to upward pressure on inflation.

[KimWrice]

Thanks for the timely response, appreciate it

[amcvicar]

Gracias!