||True or False: 1. In periods of high unexpected inflation, the nominal interest rate can be high while the real interest rate is low or even negative. 2. In a growing economy, real GDP will tend to rise from one business cycle peak to the next. 3. In an expansion, investment is rising, but expenditures for expensive durable consumer goods are falling. 4. A contraction is a period of falling real output and is usually accompanied by rising unemployment and declining business and consumer confidence. 5. Unemployment falls substantially as soon as the economy enters the expansion phase of the business cycle. 6. The lengths of business cycles are not uniform. 7. The performance of the economy and the fate of an incumbent’s bid for reelection show a strong correlation. 8. Econometric forecasts are generally highly accurate.