Critically analyse the relevance of the Phillips Curve trade-off for India across business-cycle phases, with reference to core inflation, expectations, and supply shocks. (Answer in 250 words)

The Phillips Curve posits an inverse relation between inflation and unemployment, implying a policy trade-off. India’s experience—marked by food-fuel shocks, supply bottlenecks, and structural underemployment—tests this relationship and urges caution in treating it as stable.

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