Quiz #578

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