True or False:
1. In the aggregate expenditure model, when total spending increases, firms increase their output and hire more workers.
2. When we assume the price level is constant, we do not have to distinguish real variable changes from nominal variable changes.
3. The aggregate expenditure approach assumes that prices and wages are constant until we reach full employment.
4. Disposable income is one of the dominant factors in determining the demand for consumer goods.
5. An increase in property values or a stock market boom would tend to reduce autonomous consumption.
6. If either interest rates fell or the level of household debt rose, autonomous consumption would tend to fall.
7. A decrease in consumer confidence would tend to reduce consumption spending.
8. Consumption spending depends most importantly on people’s expected future disposable income.