Quiz #448 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 requires a faster rate of growth in real wages in the coming years.

Answer: False

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

Answer: False

• 3. Public spending can "crowd out" private spending.

Answer: False