Quiz #516 answers

• 1. Workers can enjoy a stable share of GDP over time if they secure wage increases in line with the growth in their contribution to production.

Answer: False

• 2. In general, the estimates of the cyclical position of the fiscal balance provided by organisations such as OECD, the IMF and the US Congressional Budget Office are biased downwards.

Answer: True

• 3. A continuous fiscal deficit exposes the economy to inflation risk because the public spending builds up over time.

Answer: False