Quiz #556

• 1. A currency-issuing government does not control the fiscal outcome.
• False
• True
• 2. If employment growth matches the pace of growth in the working age population (people above 15 years of age) then the economy will experience a constant unemployment rate as long as participation rates do not change.
• False
• True
• 3. In a fiat monetary system (for example, US or Australia) with an on-going external deficit and fiscal deficit that is smaller than the external sector, then the domestic private sector is in:
• Surplus
• Cannot tell without knowing the actual deficits as a percent of GDP.
• Deficit