For each question, identify the statement as True, False, or Uncertain, and explain your reasoning. You may use written, diagrammatic, and mathematical arguments as appropriate.

I would really appreciate stating the concepts and theories used so that I can do more research on my own to understand it better!

1. Assume both labour productivity and the mark-up are constant. Comparing an economy with trade unions to another economy without trade unions, the activities of trade unions are counterproductive because they generate inflationary pressure and in the new equilibrium, employment is lower.
2. When the interest rate on government debt is smaller than the growth rate of the economy's output, the debt-to-output ratio can be stabilised only if the government runs a deficit.
3. A policy of quantitative easing (QE) might be especially useful when the short-term nominal interest rate reaches some effective lower bound because it is likely to encourage commercial banks to lend more to the private economy.
4. Financial deregulation that increases the degree of competition among banks should be accompanied by a rise of the central bank's policy rate.