Which of the following is false in the dynamic AS-AD model? 0 An increase in the natural level of output has no effect on the long-mn ination rate. 0 To control ination, the central bank should increase the nominal interest rate more than one to one in response to an increase in the ination rate. Q The monetary policy rule determines the slope of the dynamic AD curve. 0 The output equation relates real output negatively to nominal interest rates. 9. Consider the Human Capital Accumulation model with a production function given by Y = AKG'EHG'E, saving rates 3;; = Illl and 33 = 0.09. a common depreciation rate i5 (5 = 0.05 and A = 1. Which of the following is false? C) the longann intensity of human capital relative to physical capital will fall when 3H falls C) the long run growth rate of physical capital will fall when stalls C) the longann intensity of human capital relative to physical capital is W16 C) the longann growth rate of physical capital is 0.12 3 Suppose that production function is Y 2 K11[:1 (ANFIP' and competitive rms hire capital and labor to produce output. Let r be the return paid to capital and w be the real wage paid to labor. Which of the following is true? C) a prot-maximizing flrrn hires capital and labor until average products equal factor prices C) labor income share is US C) real return to capital r grows at the rate of productivity growth C) real wages w grows at the rate of productivity growth