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    Which of the following statement(s) is / are true with respect to Phillips Curve

    It shows the trade-off between unemployment and inflation

    The downward sloping curve of Philips Curve is generally held to be valid only in the short run

    In the long run, Phillips Curve is usually thought to be horizontal at the non-accelerating inflation rate of unemployment (NAIRU)

    Select the correct answer using the code given below :

  • 1 only
  • 2 and 3 only
  • 1 and 2 only
  • 1, 2 and 3