The Weekend Quiz – September 1-2, 2018

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. Over a given economic cycle (peak to peak), if a nation's external sector is, on average, balanced and the government gap between its tax revenue and spending is, on average, equal to 1 per cent of GDP, then the private domestic sector's spending-income balance will, on average, be in:

Deficit of 1 per cent of GDP
Surplus of 1 per cent of GDP

2. If the government uses its fiscal policy instruments to maintain trend real GDP growth it will also ensure full employment is sustained.

True
False

3. If the external sector is accumulating financial claims on the local economy (that is, providing foreign savings to the domestic economy) and the GDP growth rate is lower than the real interest rate, then the private domestic sector and the government sector can run surpluses without damaging employment growth.

True
False

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7 Responses to The Weekend Quiz – September 1-2, 2018

Lance says:

Friday, August 31, 2018 at 18:51

Three out of three. Honestly, I found the questions this week very difficult, and a great deal of guesswork was involved. Question one I didn’t understand whether the tax revenue exceeded the spending or not.
Dave Kelley says:

Friday, August 31, 2018 at 19:14

I got the answer to the spam script question right.

My answers are that the other questions are ‘rubbish’. I’m used to scoring low, so I can take another 0/3 score.

(Hope you’re feeling better.)
Robert Morgan says:

Friday, August 31, 2018 at 22:19

2 out of 3 this week..
Thank you Bill, for all your efforts to spread the MMT word.
It is appreciated..
Dave Kelley says:

Friday, August 31, 2018 at 23:30

I think I’d better take another look at the questions!
Dave Kelley says:

Friday, August 31, 2018 at 23:52

Well I had a go, and after answering questions my wife posed, I managed to get the three answers correct! (She’s a wizard with MMT.)
Nigel Hargreaves says:

Saturday, September 1, 2018 at 1:20

Lance,

I agree so I got the answer to Q1 wrong. Other two right.
cs says:

Sunday, September 2, 2018 at 6:11

2/3 cause I assumed with question 1 that the government tax-spend gap was a government deficit not a surplus… ‘gap’ to me means ‘deficit’ or implies a deficiency rather than savings…. Oh well ;-)

At least we didn’t need to calculate the marginal propensity to consume this week ;-)