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Saturday Quiz – September 21, 2013

Welcome to the Billy Blog Saturday Quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.

1. When an external deficit and public deficit coincide, the private sector is in balance (spending is equal to income).

2. Which scenario represents a more expansionary outcome: (a) A budget deficit equivalent to 5 per cent of GDP (including the impact of automatic stabilisers equivalent to 3 per cent of GDP). (b) A budget deficit equivalent to 3 per cent of GDP. (c) You cannot tell because you do not know the decomposition between the cyclical and structural components in Option (b)

3. With rising aged dependency ratios, the fact that a sovereign government is never financially constrained means that it can always provide first-class health care to its aeging citizens.

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