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…
The Weekend Quiz – September 1-2, 2018
Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.
- 1. Over a given economic cycle (peak to peak), if a nation's external sector is, on average, balanced and the government gap between its tax revenue and spending is, on average, equal to 1 per cent of GDP, then the private domestic sector's spending-income balance will, on average, be in:
- Deficit of 1 per cent of GDP
- Surplus of 1 per cent of GDP
- 2. If the government uses its fiscal policy instruments to maintain trend real GDP growth it will also ensure full employment is sustained.
- 3. If the external sector is accumulating financial claims on the local economy (that is, providing foreign savings to the domestic economy) and the GDP growth rate is lower than the real interest rate, then the private domestic sector and the government sector can run surpluses without damaging employment growth.
Sorry, quiz 493 is now closed.
You can find the answers and discussion here
This Post Has 7 Comments
Three out of three. Honestly, I found the questions this week very difficult, and a great deal of guesswork was involved. Question one I didn’t understand whether the tax revenue exceeded the spending or not.
I got the answer to the spam script question right.
My answers are that the other questions are ‘rubbish’. I’m used to scoring low, so I can take another 0/3 score.
(Hope you’re feeling better.)
2 out of 3 this week..
Thank you Bill, for all your efforts to spread the MMT word.
It is appreciated..
I think I’d better take another look at the questions!
Well I had a go, and after answering questions my wife posed, I managed to get the three answers correct! (She’s a wizard with MMT.)
I agree so I got the answer to Q1 wrong. Other two right.
2/3 cause I assumed with question 1 that the government tax-spend gap was a government deficit not a surplus… ‘gap’ to me means ‘deficit’ or implies a deficiency rather than savings…. Oh well 😉
At least we didn’t need to calculate the marginal propensity to consume this week 😉