Question 25 2 pts Consider a standard AD-AS model. The economy is affected by the following sequence of events. In period 1 there is a shock to the economy that is temporary. In period 2, the shock ends. But having observed an inflation outcome different to the inflation target, inflation expectations change from the inflation target to a value exactly equal to the observed inflation in period 1 (that is, expectations are not 'anchored'). A temporary positive demand shock would lead to output above potential in period 1, but below potential in period 2. Answer true or false. Please briefly explain your answer.Question 26 2 pts Consider a closed economy. The increased capital depreciation rate and a decrease in the tax rate on returns on savings will decrease real interest rates and the equilibrium quantity of saving supplied and demanded in this economy. Answer true or false. Please briey explain your answer. Question 27 2 pts Consider a country that is in steady state. According to the Solow-Swan model, investment per person is zero. Answer true or false. Please briey explain your answer. Question 28 2 pts The demand for cameras in a certain country is given by D = 800 4P, where P is the price of a camera. Supply by domestic camera producers is S = 400 + P. If the world price of a camera is $50, this country's economic surplus is 146,250. Answer true or false. Please briey explain your answer. Question 29 2 pts Use the following information about Australia to answer the question: Sale of wool to Italy is $300, tuition paid by overseas students is $700, dividend payment made by overseas rms to Australian companies is $1,000, purchase of overseas stocks by Australian residents is $500, and purchase of Australian government bond by foreign investors is $1,300. The balance of the current account in Australia is $2,000. Answer true or false. Please briey explain your answer. Question 30 2 pts There are two countries in the world, Australia and Japan. Suppose that the central bank of Australia raises the real interest rate, while the central bank of Japan lowers the real interest rate. In this case, the nominal exchange rate (Yen/Dollar) increases. Answer true or false. Please briey explain your