Trade inflation for unemployment in the short run — and see why that tradeoff vanishes in the long run.
Understand why policymakers can trade inflation for unemployment in the short run but not the long run.
Drag the demand/policy shock to the right (an expansion).
Before you act, predict what will happen. What happens to unemployment and inflation as the economy moves along the curve? Then do it — did your prediction match what happened?
Inflation vs. unemployment
The short-run curve trades inflation for unemployment; the vertical long-run curve sits at the natural rate, where expectations have fully adjusted.