Introduction The Philips curve shows the relation between the rate of inflation and the unemployment rate of a country (Hoover). The theory of the Philips curve is pioneered by William Philips in 1958, who showed the relation between wage inflation and unemployment are inverse in his paper. The idea of Philips was accepted widely, and it was considered as one of the major economic theories before 1970 when stagflation proved the Philips theory as an inefficient theory. However, the theory is being used widely around the world as it helps analysts to measure the actual relation of a country’s unemployment with the inflation of that particular country. Even today, the importance of the Philips curve is very high, as economists still use it to justify a country’s inflation level under different economic situations. In 2014 Daly and Hobjin researched wage inflation during the recession to find out the impact on the unemployment rate, and they have concluded that downward rigidities of wage bend the Philips curve. They also concluded that the bending of the Philips curve happens in two different ways- during inflation, the unemployment rate has more impact on the curve, and after the recession, wage inflation takes the movement to reduce the effect of unemployment. As an economist, it is very significant to understand how the Philips curve is formed and how the selected variables are used to calculate the Philips curve. On the other hand, in 1962, Arther Malvin Okun proposed an empirical relationship between the growth of unemployment rate and the real GDP growth of a country, his model is not derived from any theory rather, the model is proved empirically, and it is known as the Okun’s law. Okun’s law states that an increase in the 1% unemployment rate usually has a 2% or higher negative impact on the real GDP of a country. As it is explained in the paper, the theory is more focused on all collective factors of GDP growth, which includes changes in labor force participation, changes in the hours worked, changes in the output due to the changes in the total working hours, etc. Because of the use of mathematical approximation, Okun’s law was proved to be very useful for economists for managing the unemployment rate of an economy, helping them to estimate the approximate cost of maintaining an expected level of unemployment rate in the country. Okun’s law has become the basis of forecasting the economic conditions, especially unemployment and country output. Due to the empirical applications of the model, many researchers have been adopting Okun’s law ever since the model was proposed by Okun. Ball et. al have concluded in their paper that professional forecast believes the Okun’s law given that the data have an acceptable error. Their study finds that Okun’s law is consistent as they found the relationship between the unemployment rate and the output growth rate is negative, as proposed by Okun in 1962 (Ball et al..12). In this paper, we will use the standard theory of William Philips to measure the Philips curve of Turkey using 25 years of available data of the country. We also will examine the relationship between the inflation and unemployment rate