Quiz #553 answers

• 1. A sovereign national government can run a balanced fiscal position over the economic cycle (peak to peak) as long as it accepts that after all the spending adjustments are exhausted that the private domestic balance will only be able to save overall if the external balance is in surplus.

Answer: True

• 2. Modern Monetary Theory (MMT) demonstrates that excessive real wages can cause unemployment.

Answer: True

• 3. If workers are to get a larger share of GDP then their wages have to grow faster than inflation.

Answer: False