Please solve attached question

Question 1 circulate Answer TRUE or FALSE for each question. No explanation is needed. [20 marks; 2 mark each] (a) In the endogenous growth model, assume that b = 2 and u = 0.75. In equilibrium, there will be growth in the economy's total output. (b) The asymmetric information problem can partially explain the 2008 financial crisis, unlike the limited commitment problem. compiled for (c) Suppose some consumer gets utility from only current and future consumption. If the in- r circulate terest rate falls, the substitution effect implies that the consumer will reduce their current consumption so they can increase their savings and thus future consumption. (d) Suppose some consumer gets utility from only current consumption and leisure. If the real wage falls, the substitution effect implies that the consumer will reduce their current con- This file sumption and increase their leisure time. (e) Suppose a is the fraction of good borrowers in a credit market who will repay their loans. During a recession, o tends to fall, which results in an decrease in the size of the default premium that borrowers face. (f) There is almost no correlation across countries between the level of output per capita in 1960 and the average rate of growth in output per capita for the years 1960-2007. This is inconsistent with the idea of convergence in the Solow model. This die $237912 Do not copy (g) Pareto optimality is a better measure of equity than efficiency. (h) In the Solow model's steady-state equilibrium, aggregate variables grow at the same rate as the population. 'i) When positive externalities exist in a goods market, the quantity demanded for that good is too high. Col (j) Consider the one-period model. Suppose U(C, !) = C2 + l', and w = 6, h = 24, * = 20 and T = 10. In equilibrium, ("* = 14.189