Quiz #578 answers

• 1. From the perspective of Modern Monetary Theory (MMT), mass unemployment can arise from workers demanding excessive real wages.

Answer: True

• 2. If a government balances its fiscal position over a given economic cycle (peak to peak), then the private domestic sector will be increasingly indebted if there is an average external deficit over the same cycle.

Answer: True

• 3. If wages keep pace with inflation, which is accelerating at the same rate as labour productivity then the share of wages in GDP remains unchanged.

Answer: True