Both tariffs and quotas lead to a decrease in imports, a decrease in domestic consumption, and an increase in domestic production

Which of the following statements about positive economic analysis is true?

A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. D) Unlike positive economic analysis, normative economic analysis can be tested.

If monetary policymakers fear a recession resulting from increased pessimism on the part of business people, and they want to avoid the recession, they would:

A. likely lower their target rate for inflation. B. shift the monetary policy reaction curve to the right. C. shift the monetary policy reaction curve to the left. D. encourage fiscal policymakers to act.