With reference to the Demand-Pull Inflation, consider the following statements:

1. Demand-pull inflation exists when aggregate demand for a good or service outstrips aggregate supply.

2. If aggregate demand rises faster than productive capacity, then firms will respond by putting up prices, creating inflation.

3. Demand-Pull inflation is also when overall prices increase (inflation) due to increases in the cost of wages and raw materials.

How many of the statements given above are correct?