Consider the following statements and select the correct answer:
1. Skewflation refers to relative price rise of one or a group of commodities whereas Stagflation is a combination of slow economic growth and rising unemployment.
2. Skewflation is a state in which the economy shows the characteristics of inflation and reflation whereas Stagflation is a situation in which the inflation rate is high and economy goes into recession.
Which of the statements given above is/are correct?1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2