Quiz #353 answers

• 1. A hallmark of the neo-liberal period has been the declining share of wages in national income which in part meant that economic growth became more dependent on credit to maintain growth in consumption spending. Increasing the wage share will require that real wages grow in the coming years.

Answer: False

• 2. In a stock-flow consistent macroeconomics, the sectoral balance stocks all sum to zero.

Answer: False

• 3. A rising household saving ratio combined with an stable external deficit that is draining aggregate spending, doesn't necessarily mean that the fiscal deficit has to rise to maintain current output growth.

Answer: True