Krugman: Structural Reform Leads to Rock Bottom Economics

Professor Paul Krugman, a columnist for the New York Times, discusses the impact of structural reforms, which often involve wage cuts, on job creation. He questions the effectiveness of reducing interest rates over six years and critiques the common belief that government spending harms job creation. Krugman also addresses the lack of desired inflation and the consequences of fiscal austerity.

What does Professor Paul Krugman suggest about structural reforms in economics?

• They have no impact on job creation.

• They are essential for economic growth.

• They are likely to create more jobs.

• They are likely to destroy more jobs.

What is the main point Krugman makes about cutting interest rates to rock bottom?

• It has not achieved the desired economic outcomes.

• It has reduced government spending.

• It has led to high inflation.

• It has significantly boosted job creation.

According to Krugman, what is a common warning about government spending?

• It will have no effect on the economy.

• It will boost inflation significantly.

• It will result in job losses.

• It will lead to increased job opportunities.

What does Krugman question about fiscal austerity?

• Its impact on government spending.

• Its effectiveness in creating jobs.

• Its actual achievements.

• Its ability to reduce inflation.

What economic issue does Krugman highlight as missing despite low interest rates?

• Economic growth

• Job creation

• Increased government spending

• High inflation