Statement 1 : The static Philips curve expresses an inverse relation between price and unemployment.
Statement 2 : A reduction in unemployment is associated with a rise in the price when workers supply labour on the basis of expected prices.
Choose the correct option from the following :
1
Both Statement 1 and Statement 2 are true
2
Both Statement 1 and Statement 2 are false
3
Statement 1 is true and Statement 2 is false
4
Statement 1 is false and Statement 2 is true