Economics-Phillips Curve?

Question

What is the idea of expectations augmented P.C?

Answer 1

It's a longer term view of the Phillips Curve.

Part of the idea is that the more quickly worker expectations of price inflation adapt to changes in the actual rate of inflation, the more quickly unemployment will return to the natural rate, and the less successful the government will be in reducing unemployment through monetary and fiscal policy.

The Phillips curve says (for the most part, incorrectly) that inflation and unemployment levels are linked.  The Expectations Augmented Phillips curve says that the link is only short term.

Good reading at the link below.