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Determine whether the following statements are true (T) or false (F). Also explain why they are false or true.
1. When monetary policy makers embark on expansionary policy, the underlying economic condition is one of high optimism and the economy is heating up.
2. A short run Philips Curve describes a situation when low inflation can be achieved through a low unemployment rate.
3. The Unemployment Rate is the ratio of the numbers of persons "unemployed" divided by the number of persons in the working age group (where this ratio is usually expressed in percentage term.
4. Automatic stabilizers are so called because they automatically stabilizes the fluctuations in the economy without the need for a deliberate intervention by the government.
5. When people are between jobs or searching for jobs, they are categorized as "frictionally" unemployed.
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