One way to characterize the difference between positive statements and normative statements is as follows:
a. Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future.
b. Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be.
c. Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation.
d. Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.
b
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An increase in the ________ is an example of a capital gain
A) value of a share of stock B) wage rate of a federal employee C) amount of income not spent on consumption or taxes D) after-tax wage rate as a result of a decrease in income tax rates
In a simple macroeconomic model, only one component of expenditures is allowed to change:
A. investment. B. consumption. C. net exports. D. government spending. E. transfer payments.