Quiz #321

• 1. National accounting rules dictate that a national government surplus equals a non-government deficit (and vice-versa). If a national government successfully achieves a budget surplus through an austerity program then the private domestic sector must be spending more than it is earning.
• False
• True
• 2. The share of national income going to profits has expanded over the last 30 years in many nations because employers have successfully suppressed real wages growth.
• False
• True
• 3. The Australian dollar has appreciated in recent days but the damaging effects on our international competitiveness can be offset if local workers accept a cut in nominal wages and the rate of inflation is contained.
• False
• True