Quiz #2 answers

• Hours-based measures of labour underutilisation will always be higher than person-based measures

Answer: if there is underemployment.

Explanation: Please consult the blog Labour market tanking for more information.

• While budget surpluses withdraw private sector purchasing power

Answer: they also undermine the overall capacity to save.

Explanation: Please see the blog Budget surpluses are not saving for further information.

• The federal budget deficit can be excessive

Answer: if the net government spending exceeds the private desire to save.

Explanation: Please see the blog Size of deficit 101 for further information.

• The US government's latest plan (the Public-Private Investment Program) will

Answer: will not impede the capacity of the US Government to create full employment.

Explanation: Please see the blog US detox lunacy for further information.

• The current trend to increasing budget deficits

Answer: will burden future generations if it fails to generate real growth in employment and national income.

Explanation: Please see the blog Size of deficit 101 for further information.