Question

Consider the following statements about the Phillips Curve: 1. The Phillips Curve shows an inverse relationship between inflation and unemployment. 2. In the long run, the Phillips Curve becomes a vertical line. 3. It is a universally accepted theory without exceptions. 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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