Fill in the blanks with increase, decrease, no change or ambiguous. 1. Other things the same, an increase in trade deficit will decrease GDP. 2. Other things the same, an increase... Fill in the blanks with increase, decrease, no change or ambiguous. 1. Other things the same, an increase in trade deficit will decrease GDP. 2. Other things the same, an increase in trade deficit will increase Unemployment. 3. Other things the same, an increase in budget deficit will increase GDP. 4. Other things the same, an increase in trade deficit will increase Unemployment. 5. Other things the same, an increase in trade surplus will decrease unemployment. 6. Other things the same, an increase in budget surplus will decrease GDP. 7. Other things the same, an increase in social security spending will decrease Unemployment. 8. Other things the same, an increase in social security spending will increase GDP. 9. Other things the same, an increase in foreign aid will ambiguous GDP. Read more

Understand the Problem

The question is asking for the effects of changes in various economic indicators on GDP and unemployment, specifically whether they will increase, decrease, remain unchanged, or if the effect is ambiguous. Each statement presents a different scenario to evaluate.

More Information

A trade deficit generally reduces GDP because it means more goods are imported than exported, thus reducing domestic production. It can increase unemployment due to decreased demand for locally produced goods. A budget deficit may increase GDP in the short term by stimulating economic activity through government spending.

Tips

A common mistake is misunderstanding the long-term and short-term effects of budget and trade deficits. It's important to differentiate between them.

Sources

• Solved Fill in the blanks with increase, decrease, no change - Chegg - chegg.com
• Investopedia: How Importing and Exporting Impacts the Economy - investopedia.com