What does the Phillips Curve illustrate the relationship between?

The Phillips Curve illustrates the relationship between inflation and unemployment in an economy. It shows that when unemployment is low, inflation tends to be high because more people have jobs and are spending money. Conversely, when unemployment is high, inflation usually decreases as fewer people are spending. For example, if a country has a low unemployment rate of 3%, it might experience rising prices because businesses are competing for workers and passing on costs to consumers. This relationship helps economists understand how changes in one area can impact the other, guiding decisions on economic policies.