Falling unemployment might cause rising inflation and a fall in inflation might only be possible by allowing unemployment to rise. This is shown using the Phillips curve.
Policy conflict - When trying to achieve one government objective, it has a negative effect on another
Example conflicts:
Expanding the economy and reducing unemployment will likely lead to inflation as aggregatedemand increase.
A rise in economic growth may cause damage to the environment through more travel, manufacturing and energy use.
You can achieve both a fall in unemployment and inflation by increasing Long Run Aggregate Supply.
