First, Consider all the macroeconomics objs.
To answer this question first give all the pros of low unemplymement.
Next consider the tradeoffs:
The Philips curve shows that these two have an inverse relationship. If the government tries to
reduce unemployment by lowering interest rates and increasing public spending then prices will rise.
This is because firms will be providing higher wages in order to attract workers from a diminishing
pool of the unemployed.
On the other hand, when the government tries to control high inflation with higher interest rates
and reduced spending, the resulting reduced consumer spending and lower investment will result in
job losses.
