a) False. According to many New Keynesians, change in money supply has an effect on output in the long-run. The monetary policy impacts output in the short run, but not the long run. b) False. K. Marx's perspective on the dynamics of capitalist economies rested on human capital accumulation which creates greater wealth for a few at the expense of others.c) False. Since New Keynesians and New Classicals generally share the view of rational expectations, they have very different views on the consequences of discretionary macroeconomic policy making in the short-run. New Keynesians favor government intervention, while New Classicals don't. d) True. According to Milton Friedman, there is a trade-off between unemployment and inflation rate in the long-run.Part C. Discuss ONLY one of the following statements!I. Capitalism is about turning luxuries into necessitiesCapitalism is a socio-economic system in which the means of production are privately owned and operated for profit. The system allows people to engage in economic activity and invest their capital to generate more wealth. Turning luxuries into necessities, on the other hand, is a different concept altogether.Luxuries are goods and services that are not essential for life, but they are still desirable and can be obtained with disposable income. Necessities, on the other hand, are goods and services that are essential for life, such as food, water, shelter, and clothing. Capitalism is not about turning luxuries into necessities, but rather it is about creating products and services that people want to purchase with their disposable income.In conclusion, capitalism is not about turning luxuries into necessities. Instead, it is about creating products and services that people want to purchase with their disposable income.