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10. 11. . Endogenous variables are determined within the model. A. True B. False GDP can be measured using the production, expenditure, and income ap- proach. A. True B. False . The Cobb-Douglass production function F(K, L) : AK1/3L2/3 features con stant returns to scale in capital K and labor L together. A. True B. False Net investment AKIH is a stock variable. A. True B. False Cyclical unemployment is not included in the natural rate of unemployment. A. True B. False There is a weak correlation between a country's growth rate of the money supply and ination rate. A. True B. False The Federal Reserve targets the Fed Funds rate when conducting monetary policy. A. True B. False It is possible for current GDP to be above potential GDP. A. True B. False . Empirical evidence shows that households smooth consumption, following the predictions of the permanent income hypothesis, for unexpected changes in income. A. True B. False The Lucas Critique suggests that macroeconomic models must incorporate rational expectations that consumers and rms have about the future path of policies. A. True B. False The discount rate is the price ceiling in the Federal Funds market. A. True B. False