Explanation:

Statement 2: It does not discuss about inequality or environmental degradation.

Statement 1: As per the curve there is a ‘trade off’ between inflation and unemployment i.e. an inverse relationship between them.

The curve suggests that lower the inflation, higher the unemployment and higher the inflation, lower the unemployment.

During 1960s, this idea was among the most important theories of the modern economists. However, economists later contested this curve and suggested some modifications to it.