Indicate whether each statement is true or false, and briefly justify your answer.Each question is worth two marks. You should draw a labelled diagram or provide an example to explain your answer, wherever appropriate.

1.In an imperfectly competitive market, equilibrium price can never be below the marginal cost.

2.Mask making industry can differentiate their products, so in the long-run equilibrium price P=Average variable costs (AVC) for them.

3.The value of a second-hand car would be included in GDP of 2020 if its purchased by firms rather than households in 2020.

4.During COVID-19, a lot of economic activities constituted "work from home" so they will not be included in real GDP for 2020.

5.Macroeconomic policymakers in any country only want to increase real GDP and reduce unemployment without bothering about inflation.

6.In New Zealand, we are now officially out of a recession based on quarterly GDP growth rates in 2020.

7.Lowering the Official Cash Rate (OCR) in New Zealand would be an example of a contractionary monetary policy.

8.A crowding out effect of an increase in government expenditure would be expansionary in nature, increasing real GDP.

9.Introduction of digital technologies to boost productivity would shift the aggregate supply of an economy only in the short-run.