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They are inversely related. High unemployment means lots of people don't have jobs. Because they don't have jobs their incomes are low. Low incomes means they can't spend much money on products. This means that demand in the economy will fall. This fall in demand will drive producers to lower prices...and therefore inflation falls.

So...

High unemployment = low inflation

Low unemloyment = higher inflation

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Q: What is the inverse relationship between inflation and unemployment rates?
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If inflation falls why would unemployment rise?

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