True or false

1. The smaller is the parameter y in the AS curve (Pi = Pity(Y - Y)), the bigger will be the differences between the neoclassical and New Keynesian model in how Y, reacts to shocks. 2. Observed total factor productivity (TFP) is very procyclical. But this may overstate the true cyclicality of productivity if there is unobserved utilization. 3. In the standard Solow model, an increase in the saving rate, s, results in a temporary increase in the growth rate of output per worker and a permanent increase in the level of output per worker. A. If an economy's saving rate is above the Golden rule saving rate, then reducing the saving rate will make households better off. 5. In a cross-section of countries, observed total factor productivity (TFP) and real GDP per capita are positively correlated