The Weekend Quiz – August 1-2, 2020

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.

Quiz #593

  • 1. Which scenario represents a more expansionary outcome:
    • A fiscal deficit equivalent to 5 per cent of GDP (including the impact of automatic stabilisers equivalent to 3 per cent of GDP).
    • A fiscal deficit equivalent to 3 per cent of GDP.
    • You cannot tell because you do not know the decomposition between the cyclical and structural components in Option (B)
  • 2. Fiscal austerity (manifesting as a fiscal surplus) will not damage economic growth if the external balance is in surplus and adding net spending to the economy.
    • False
    • True
  • 3. In the context of population ageing, the fact that a sovereign government is never financially constrained means that it can always provide first-class health care to its citizens.
    • False
    • True

Sorry, quiz 593 is now closed.

You can find the answers and discussion here

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