Indicate whether the statement in each part is true, false, or uncertain given the information provided. You must briefly justify your answer, i.e. you will not receive full credit for simply stating the answer without an explanation.

1. (6 points) Because technology will keep progressing and making us richer, it is reasonable to expect our grandchildren to work only 15 hours per week.

2. (6 points) A central bank cannot achieve a positive output gap forever without generating inflation.

3. (6 points) The central bank can directly control the nominal interest rate by changing the supply of money in the economy.

4. (6 points) Because the number of bitcoins will eventually reach a finite limit, prices denomi- nated in bitcoin will be stable and will exhibit a positive but small inflation.

5. (6 points) There is no unemployment in the economy; people who do not have a job simply enjoy leisure or prefer to play video-games in their parents' basement.