State and explain if the following statements are True/False/Uncertain. You need to explain with proper graphs and facts even if the statement is true.

1. When the economy is experiencing a temporary recessionary gap, classical macroeconomists believe that the federal government can increase the government expenditure to increase GDP and reduce prices.An increase in inventories might increase economic growth, while a fall in inventories might be a sign of recession.3. Structural unemployment arises from the normal labor market turnover from people entering and leaving the labor force4. A reduction in reserve requirement by the central bank will lead to currency appreciation which will reduce the trade balanc