True or False

1. If short-run equilibrium GDP is above potential GDP, prices will eventually rise.

2. A tax reduction shifts the consumption schedule downward.

3. A superior level of technology is an important reason the productivity of workers in rich countries is high.

4. A nation's capital consists mainly of stocks, bonds, and other financial assets.

5. Technological change was a major contributor to the productivity speed-up since 1995.

6. A decrease in disposable income causes a shift in the consumption function.

7. If firms are experiencing falling inventories, one can expect that firms will cut production.

8. President Bush in 2001 wanted a tax cut to stimulate consumer spending.