1. Whenreal wage (w) falls, then according to the income effect (IE) a worker will want to work more, and according to the substitution effect (SE) a worker will want to work less. Ture or False
2. Labor force captures those who are employed and those who are actively looking for work. Ture or False
3. As a store of value money promotes economic efficiency by

a. reducing the transaction costs as a result of reducing the number of prices needed to be considered

b. eliminating much of the time spent exchanging goods and services due to the double coincidence of wants

c. saving purchasing power from the time income is received until it is used

d. allowing people to specialize in what they do best

4 . Between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this period US experienced

a. Falling Prices

b. Disinflation

c. Deflation

d. Hyperinflation

5.For an individual that is neither a lender or borrower, the substitution effect from a change in r is always zero. Ture or False