1. A currency-issuing government does not control the final fiscal outcome in any period.

Answer: 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.

Answer: True

3. n 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:

Answer: Deficit