Consider the following statements about the Phillips Curve:
- The Phillips Curve shows the relationship between inflation and unemployment.
- In the short run, the Phillips Curve suggests an inverse relationship between inflation and unemployment.
- In the long run, the Phillips Curve becomes vertical, indicating no trade-off between inflation and unemployment.
Which of the above statements are correct?
1
1 and 2 only
2
2 only
3
1 and 3 only
4
2 and 3 only
5
1, 2, and 3