True or False:
1. A macroeconomic problem arises if the federal government's fiscal decision makers differ with the Fed's monetary decision makers on policy objectives or targets.
2. The Fed occasionally works to partly offset or even neutralize the effects of fiscal policies that it views as inappropriate.
3. For government policymakers to be sure of doing more good than harm, they need far more accurate and timely information than experts can give them.
4. Economic advisers, using sophisticated econometric models, can forecast what the economy will do in the future with reasonable accuracy.
5. Even if economists could provide completely accurate economic forecasts of what will happen if macroeconomic policies are unchanged, they could not be certain of how to best promote stable economic growth.
6. Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
7. Most of the effects of a given monetary policy will be on prices rather than RGDP in the short run, if the SRAS is relatively steep over the relevant range.
8. If the "new" economy increases productivity, the Fed, in trying to allow for greater economic growth without creating inflationary pressures, must estimate how much faster productivity is increasing and whether those increases are temporary or permanent.