Quiz #568 answers

• 1. For workers to get a rising share of national income their nominal wages have to grow faster than inflation.

Answer: False

• 2. Modern Monetary Theory implies that higher levels of taxation are not necessary for the government to spend more in real terms.

Answer: False

• 3. After a deep recession, governments wanting to reduce their unemployment rates should use expansionary fiscal policy such that real GDP growth equals the sum of the labour productivity growth and the labour force growth rate.

Answer: False