Long-run Phillips curve: The long-run Phillips curve shows that there is no trade-off between inflation and unemployment in the long run, indicating that unemployment eventually returns to its natural rate regardless of changes in inflation.
Aggregate demand: Aggregate demand refers to the total amount of goods and services demanded by households, businesses, government entities, and foreigners within an economy.
Stagflation: Stagflation occurs when an economy experiences both high levels of inflation and high levels of unemployment simultaneously. It is a situation contrary to what is typically expected based on the short-run Phillips curve.