Quiz #386

• 1. As long as employment growth keeps pace with labour force growth, unemployment will not rise.
• False
• True
• 2. When a government issues debt to the non-government sector it creates more non-inflationary space for itself to spend than if it spent without issuing the debt.
• False
• True
• 3. If net exports are running at 2 per cent of GDP, and the private domestic sector overall is saving an equivalent of 3 per cent of GDP, the government must be running a deficit equal to 1 per cent of GDP.
• False
• True

Quiz #386 answers

• 1. As long as employment growth keeps pace with labour force growth, unemployment will not rise.

Answer: False

• 2. When a government issues debt to the non-government sector it creates more non-inflationary space for itself to spend than if it spent without issuing the debt.

Answer: False

• 3. If net exports are running at 2 per cent of GDP, and the private domestic sector overall is saving an equivalent of 3 per cent of GDP, the government must be running a deficit equal to 1 per cent of GDP.

Answer: True