True or False:
1. At the natural rate of unemployment, the economy is producing its potential output.
2. When the economy is experiencing cyclical unemployment, the unemployment rate is less than the natural rate.
3. In both inflation and deflation, a country’s unit of currency changes in purchasing power.
4. Unanticipated and sharp price changes are almost universally considered to be a “bad” thing that needs to be remedied by some policy.
5. Debtors lose from inflation.
6. Wage earners will lose from inflation if wages rise at a slower rate than the price level.
7. Uncertainty about inflation can increase long-term interest rates by adding an inflation risk premium.
8. Inflation brings about changes in real incomes of persons.