Electronic Theses and Dissertation

This study aims to analyze the relationship between inflation and unemployment in Aceh. The analytical model used in this study is Granger Causality model using data in an annual form from 1998 to 2020. The results of the Granger causality test show that there is no significant causal relationship between inflation and unemployment, it only occurs in one direction; namely, unemployment affects inflation. Based on the test results, for the case of the economy in Aceh during the period 1998 to 2020, there is no trade-off relationship between inflation and unemployment as depicted in the Phillips curve. Keywords: Phillips curve, unemployment rate, inflation, Granger causality model