(1) TRUE/FALSE - EXPLAIN: In the Aggregate Expenditure (AE) model, unlike Solow-Swan, not all savings are invested.
(2) The government imposes a mandate on all companies requiring them re-fit their operations with a government approved device that monitors each company's electricity use and automatically reports if it exceeds the new monthly kilowatt usage set by the government regulator. Use a dynamic AD-AS model that incorporates LRAS and SRAS to show just the initial ceteris paribus effects of this mandate on the macroeconomy. Explain the intuition behind your answer using the Solow-Swan growth framework.