If a country's real GDP is equal to its Potential GDP, then which of the following is/are correct?

1. The aggregate demand and supply in the economy are balanced

2. Inflation tends to increase in the economy

3. There is no involuntary unemployment in the economy 

Select the correct answer using the code given below.

1
1 and 2 only
2
3 only
3
1 and 3 only
4
1, 2 and 3

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