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 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. If the external sector was running a surplus equivalent to 4 per cent of GDP, and the sum of all the private sector spending plans indicated it was desiring to run a surplus overall equivalent to 6 per cent, then the government could safely plan on achieving a fiscal surplus of 2 per cent of GDP.
- 2. The automatic stabilisers work counter-cyclically without any discretionary changes by government and push the fiscal balance back to its appropriate level after a major cyclical disturbance.
- 3. The monetary base always adjusts by increasing when commercial banks increase their loans.
Sorry, quiz 654 is now closed.
You can find the answers and discussion here