Choose whether the below statements are TRUE or FALSE. Briefly explain your reason. Show your calculations where necessary

1. In a simple Keynesian model (with lump-sum taxes and a MPC of 0.7753 a tax cut of $ 20 billion will have less of an impact on GDP than an increase in government spending of $ 10 billion. Provide your answer with calculations.

2. The fact that trade policy often imposes harm on large numbers of people, and benefit only a can be explained by the problem of collective action.

3. If nation A can produce 5 units of good X or 10 units of good Y and nation B can produce 4 units of good X or 12 units of good Y, we can conclude that nation A has a comparative advantage in X and an absolute advantage in Y.

4. According to Marx, surplus value is the component of a commodity's value that exceeds the value of its inputs