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The Weekend Quiz – January 9-10, 2021

Summary:
Welcome to The Weekend Quiz – the last for 2020. 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. Widening the tax base provides the government with more capacity to spend.TrueFalse2. If there is an external deficit, and the private domestic sector successfully increases its overall saving as a percentage of GDP, then income adjustments will always ensure the government fiscal balance is in deficit.TrueFalse3. Estimates of structural fiscal deficits published the multilateral agencies such as the IMF and the OECD are to be treated with suspicion because they are based on excessively optimistic estimates of potential

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Welcome to The Weekend Quiz – the last for 2020. 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.

The Weekend Quiz – January 9-10, 2021

1. Widening the tax base provides the government with more capacity to spend.



2. If there is an external deficit, and the private domestic sector successfully increases its overall saving as a percentage of GDP, then income adjustments will always ensure the government fiscal balance is in deficit.



3. Estimates of structural fiscal deficits published the multilateral agencies such as the IMF and the OECD are to be treated with suspicion because they are based on excessively optimistic estimates of potential GDP.





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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