True or false:
1. Most economists want a 0% target for unemployment.
2. The current natural rate of unemployment is thought to be somewhere around 5%.
3. If the economy is above full employment it causes higher than normal unemployment.
4. Inflation can be increased by either an increase in AD or AS.
5. Cyclical unemployment can be caused by a drop in AD or AS.
6. The natural rate of unemployment is associated with high inflation.
7. The core PPI is often used to predict where we are relative to full employment.
8. In a closed economy, inflation represents a decline in average real income.
9. Frictional unemployment is permanent for the labor force, temporary for individuals.
10. It is possible, although unusual, for cyclical unemployment to be negative.