Question

Consider the following statements about inflation: 1. Inflation erodes the purchasing power of money. 2. Cost-push inflation occurs due to an increase in the cost of production. 3. Inflation is always harmful to the economy. Which of the above statements are correct?

A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2, and 3
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