With reference to the fiscal drag, consider the following statements:

1. It is an economic term whereby inflation or income growth moves taxpayers into higher tax brackets.

2. It is essentially a slowing in the growth of the economy caused by a lack of spending as increased taxation slows the demand for goods and services. 

3. It is common to view fiscal drag as a natural economic stabilizer as it tends to keep demand stable and prevent the economy from overheating. 

Which of the above statement is/are correct?