Quiz #622

• 1. National accounting rules dictate that a national government surplus equals a non-government deficit (and vice-versa). If a national government successfully achieves a fiscalsurplus through an austerity program then the private domestic sector must therefore be spending more than it is earning.
• False
• True
• 2. The relentless push by neo-liberals to cut real wages growth has ensured the share of national income going to profits has expanded over the last 30 years in many nations.
• False
• True
• 3. Unemployment can still rise when employment growth keeps pace with labour force growth.
• False
• True

Quiz #622 answers

• 1. National accounting rules dictate that a national government surplus equals a non-government deficit (and vice-versa). If a national government successfully achieves a fiscalsurplus through an austerity program then the private domestic sector must therefore be spending more than it is earning.

Answer: False

• 2. The relentless push by neo-liberals to cut real wages growth has ensured the share of national income going to profits has expanded over the last 30 years in many nations.

Answer: False

• 3. Unemployment can still rise when employment growth keeps pace with labour force growth.

Answer: True