Question: Please answer the TRUE/FALSE questions 1-10 on the image A. True/False (40 pts) Note: You do not need to explain your answers in this section.

Please answer the TRUE/FALSE questions 1-10 on the image

Please answer the TRUE/FALSE questions 1-10 on the image A. True/False (40

A. True/False (40 pts) Note: You do not need to explain your answers in this section. 01. [T/F] (2pt) Different models might have different variables of interest. 02. [T/F] (2pt) Inflations for the same period of time computed using different years as the base year are different. 03. [T/F] (2pt) The basket of goods change across time but very infrequently. 04. [T/F] (2pt) If, magically, all products' prices went up by 100%, then wage should also increase by 100%. People become better off. 05. [T/F] (2pt) The money market and goods market together connect all five sectors: Households, Firms, Government, Financial Institutions, and the Rest of the World. 06. [T/F] (2pt) A short-run model in macroeconomics assumes that prices change. 07. [T/F] (2pt) The Marginal Propensity to Consume is the same for each individual in an economy. 08. [T/F] (2pt) The linear consumption function is C = co + c1YD. It is reasonable to assume co = 0. 09. [T/F] (2pt) In the standard goods market model we studied in class, the multiplier for government spending is larger than 1. 10. [T/F] (2pt) In the standard goods market model we studied in class, the magnitude of the multiplier for government tax is larger than 1

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