Answer the following statements true (T) or false (F)

1) The interest-rate effect is one of the determinants of aggregate demand.
2) The real-balances effect indicates that inflation makes the public feel wealthier and they
therefore spend more out of their current incomes.
3) Other things equal, an increase in productivity will shift the short-run aggregate supply curve rightward.
4) In the immediate short run, both input and output prices are fixed.
5) An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve.

1) F
2) F
3) T
4) T
5) F