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 714th and Final Weekend Quiz – December 31, 2022
Welcome to The Weekend Quiz. This is the 714th edition of the quiz which was first launched on Saturday, March 21, 2009. It is also the final quiz that I will be hosting on this blog. The quiz will reappear soon at – MMTed – where you will be able to access the database at any time and randomly generate your own quiz questions (and analysis) on demand. I will make an announcement soon when the quiz app is ready for use. As usual, this 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. Excessive real wages growth can trigger mass unemployment.
- 2. A government desires to reduce the unemployment rate over the next year and gears its macroeconomic policy to maintaining trend real GDP growth, which is 3.5 per cent per annum. If we know that labour productivity is growing at 2 per cent per annum, the labour force is growing at 1.5 per cent per annum, and the average working week is constant in hours, the government will succeed in its aim if real GDP is sustained at the trend.
- 3. If a sovereign national government runs a balanced fiscal position over the economic cycle (peak to peak), it must accept, that after all the spending adjustments are exhausted, that the private domestic balance will only be in surplus if the external balance is in surplus.
Sorry, quiz 714 is now closed.
You can find the answers and discussion here