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True or False? Please explain shortly and make sure of the answer. Thanks. 17. A recession...

True or False? Please explain shortly and make sure of the answer. Thanks.

17. A recession results in decrease of welfare program.

18. A recession and the tax are not related.

19. The unemployment and inflation are in inverse relation.

20. The unemployment and inflation relation are related to aggregate demand.

26. The trade deficit increases net capital inflow.

27. The export increases consumer surplus.

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Answer #1

17. False. During recession unemployment rate would be more which demands more unemployment benefits

18. False. During recession government would reduce the tax so that the economic growth increases

19. True. As economic growth increases inflation increases and unemployment decreases

20. True. As economic growth increases inflation increases, aggregate demand increases and unemployment decreases

26. True. Trade deficit is matched by an identically sized surplus inflow of foreign investment into the domestic country

27. False. It increases producer surplus as they get more price of the good

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