Phillips Curve

Would the point NAIRU also be at pareto optimality? I picked up that it was equilibrium as soon as I thought about it, and obviously if unemployment falls (good), inflation rises (bad)

As you said, mutually exclusive. Can't get everything we want.

minimum wages can have three effects. It can Increase in the price of the products or services offered by a company (this is to offset the extra cost). It can decrease the amount of hours for every worker, or cut workers in general increasing the unemployment rate

depends how socialistic is economy, I am living in Denmark where unions have very strong bargaining power (minimal wage per hour is around $20) Economy is working just like in the model ceretis paribus

Tmr is my exams on Macroeconomics. Thanks.

how does change in inflation affects philip's curve in a short run?

The relation between unemployment and inflation is simply observable in normal phase of growth economy...simply statistic. When the economy decrease probably the bargaining of the union create a strong resistence to the down.

great teacher , really helpful for revision Thank you so much

All lies. Inflation is because of the greedy and high debts. So are taxes when taxes fall on the poverished. Especially when only the rich can afford to find the loop holes. So feed someone else these lies.

I think you missed the point :/

You are right at the point of inflation and relation to debts. I do not thing that the Philips curve is used in that way. A increase in consumer debts = lower cost of borrowing. This stimulates autonomous consumption thus GDP and shifting AD to the right. Taxes are required as ppl become effluent, they would spend on imports more than local goods. If Import increase more than your C+G+I+X, you will face AD shift to the left resulting in recession. Btw, are you a econs major?