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The Weekend Quiz – December 7-8, 2019

Summary:
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. In the recent European Commission Autumn 2019 Economic Forecast we learned that many nations, still carrying elevated levels of unemployment were judged to be operating at over-full capacity. This tells us that the Commission's structural deficit estimates are typically:biased downwardsbiased upwardsdifficult to assess because their forecasts are subject to forecasting inaccuracy.2. When a sovereign government issues debt it logically increases the financial assets that are held by the non-government sector $-for-$.TrueFalse3. Open market

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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. In the recent European Commission Autumn 2019 Economic Forecast we learned that many nations, still carrying elevated levels of unemployment were judged to be operating at over-full capacity. This tells us that the Commission's structural deficit estimates are typically:




2. When a sovereign government issues debt it logically increases the financial assets that are held by the non-government sector $-for-$.



3. Open market operations as a means of ensuring that levels of bank reserves are consistent with the policy target become redundant if the central bank pays a positive interest rate on overnight reserves held by the commercial banks (ignore any reserve requirements in place when answering).






Bill Mitchell
Bill Mitchell is a Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the University of Newcastle, NSW, Australia. He is also a professional musician and plays guitar with the Melbourne Reggae-Dub band – Pressure Drop. The band was popular around the live music scene in Melbourne in the late 1970s and early 1980s. The band reformed in late 2010.

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