1. As long as employment growth keeps pace with labour force growth, unemployment will not rise.
Answer: False
2. The non-government sector is immediately wealthier if the government matches it deficit with new debt issues compared to a situation where no debt was issued.
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: