Question: For each question, identify the statement as True, False, or Uncertain, and explain your reasoning. You may use written, diagrammatic, and mathematical arguments as appropriate.

For each question, identify the statement as True, False, or Uncertain, and explain your reasoning. You may use written, diagrammatic, and mathematical arguments as appropriate.

  1. The development of a major new technology which is important for the government's net zero carbon policy programme has no impact on the Phillips curve, and therefore the central bank should not react to it.
  2. Aggregate private consumption expenditure is sensitive to temporary tax changes.

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