Information can found in Macroeconomics Stephen D Williamson 6th CED

Part 1 (40 points) For each statement, discuss whether you think the claim is true, false, or uncertain. Support your answer in a few sentences and diagrams, and possibly some equations. You will not need any lengthy mathematical derivation for this part. Answer each question in a separate page and clearly indicate which question you are discussing in each page. 1. Negative externalities leads to social inefciencies while positive externalities improve the social welfare. 2. Based on a simple two-period model in Chapter 9 with the \"smooth\" nancial market, a decrease in the real interest rate necessarily increases a lender's consumption today. 3. In a two-period model in Chapter 11, the representative rm's optimal labour demand in the future period does not depend on any of its decision in the current period. 4. In a two-period model in Chapter 11, the slope of the output supply curve is determined solely by the representative rm's production technology and is independent of the house hold's utility maximization behaviour