When making progress towards one Macroeconomic objective, it often leads to decreased progress in another. This is called a macroeconomicconflict
Example of Macroeconomic conflict: Faster growth means higher consumption, which often comes as a result of higher disposableincome. As this is greater, consumers are likely to spend more on imports, causing a currentaccountdeficit
The Phillips curve shows an inverse relationship between inflation and unemployment
When unemployment is high, there is spare capacity in the economy, so there is less inflationary pressure
When unemployment is low, real wages increase, and spending in the economy increases, causing inflationary pressure