Falling wages will cause falling prices and rising employment. Falling wages will cause rising prices and falling employment. Rising wages will cause falling prices and rising employment. Rising wages will cause rising prices and falling employment. It is more difficult to encourage a positive shift in the aggregate quantity demanded than it is to encourage a negative shift.
Businesses feel greater pressure to decrease prices at all levels than they do to raise prices.
The tradeoff between unemployment and inflation only exists for returning to the full-employment level from a lower level of output. It takes longer for wages to fall than it does for wages to increase.