True/False/Uncertain. Explanation (a few sentences should be enough).

1. The Taylor principles ensures a unique rational expectations equilibrium in the basic New Keynesian model if state-state inflation is zero.

2. The New Keynesian Phillips Curve posits that inflation should forecast future output gaps.

3. The optimal reset price in the basic New Keynesian model is a weighted average of current and past marginal costs.

4. In the data, inflation reacts quickly ("jumps") to a monetary policy shock. In the basic New Keynesian model, inflation responds slowly to a monetary policy shock.

5. The main cost of steady-state inflation in the basic New Keynesian model is the dispersion of prices.

6. Price level targeting (PLT) is better than inflation targeting (IT) because PLT is a form of commitment and IT is a form of discretion.

7. Dynamic inconsistency in policy means that policy actions have to be supported by policy promises.

8. Information rigidity makes inflation more inertial because the central bank takes more time to learn about inflationary shocks.

9. Information rigidity for the "sticky information" and "noisy information" models can be estimated using the same econometric specification.

10. Forward guidance helps stabilize the economy at the zero-lower bound because it makes the marginal cost flatter.

11. Monetary policy has limited effect on earnings inequality.

12. Raising inflation target from 2% to 4% is a good idea