economics: inflation, unemployment question

1) inflation and unemployment are supposedly inversely related, at least in the short term.  i.e. inflation goes down, unemployment goes up.

2) higher productivity is related to higher standards of living within the economy

3) unemployment provides surplus labor

4) ignoring minimum wage laws, companies could hire surplus workers at a lower cost, thereby increasing average productivity, and so increasing average standard of living.

can you increase the standard of living by producing less currency?

I'm sure someone over in politics are just burning to answer that very question.