1.For each statement, decide whether it is True, False or Uncertain and explain why briefly. a)Y = w*L + r*K , where Y is GDP, is this equation true? And if it is, can you explain the intuition? b) Output is a function of Capital and Labor. In the Solow growth model, you can save and grow your capital indefinitely, and then your economy will always grow and standards of living will rise forever. c)In the neoclassical model, government can grow the economy by increasing spending which will then increase income and production for everyone. Is this true in the model? What about in real life?