1. The new Keynesian cycle theory views only anticipated changes in aggregate demand as the source of business cycle economic fluctuations. True OR False
2. For a persistent demand-pull inflation to occur, government expenditure must persistently increase. True OR False
3. Increases in the prices of raw materials can create cost-push inflation. True OR False
4. Inflation describes the event of increasing output and rising prices. True OR False
5. The short-run Phillips curve intersects the long-run Phillips curve at the expected inflation rate. True OR False
6. An increase in the expected inflation rate leads to a movement upward along the short-run Phillips curve. True OR False