Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern Monetary Theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.
Question 1:
From the perspective of Modern Monetary Theory (MMT) he is correct, excessive real wages growth can trigger mass unemployment.
The answer is True.
In this blog post – What causes mass unemployment? (January 11, 2010 )- I outline the way aggregate demand failures causes of mass unemployment and use a simple two person economy to demonstrate the