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.
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