If a government implements policies to reduce inflation, what is the likely short-term effect on unemployment according to the Phillips curve?

The Phillips curve suggests that there is a trade-off between inflation and unemployment in the short term. When a government takes steps to reduce inflation, such as tightening monetary policy or increasing interest rates, it can lead to higher unemployment rates. This happens because businesses may cut back on hiring or lay off workers to reduce costs as they face less demand for goods and services. For example, if a government raises interest rates to control inflation, people might spend less, leading companies to slow down production and reduce their workforce. Thus, while the goal is to stabilize prices, the immediate effect can be an increase in unemployment.