Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern…
Welcome to the Billy Blog Saturday Quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.
- 1. If the household saving ratio rises and there is an external deficit then Modern Monetary Theory (MMT) tells us that the government must increase net spending or else national output and income will fall.
- 2. An economy is projected to grow in real terms by around 1.5 per cent over the next year. It is also predicted that real GDP per employed person will grow by 1.1 per cent over the same period and that average weekly hours worked will remain more or less constant. Which of the following labour force growth rates would provide the basis for an expectation that the unemployment rate will be lower at the end of the year than at the beginning?
- 0.5 per cent
- 2.6 per cent
- 0.3 per cent
- Cannot tell because we don't know what the participation rate is likely to be
- 3. EMU member nations face solvency risk because they do not issue their own currency. This source of risk would be eliminated if these nations exited the Eurozone and issued their own floating currency.
Sorry, quiz 331 is now closed.
You can find the answers and discussion here