Which of the following is an example of a normative, as opposed to positive, statement?
a. The growth rate of the economy last year was higher than any other year in the last decade.
b. The federal government reduced spending in the last quarter of the fiscal year.
c. The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy.
d. The federal government should decrease unemployment benefits to stimulate the economy out of the recession.
d
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Which of the following is not one of the assumptions of a perfectly competitive market?
A) Better information for producers than consumers. B) Homogeneous product. C) Free entry and exit. D) Large number of buyers and sellers.
Any event that creates a "crisis in confidence" is likely to lead to
A. higher aggregate output. B. inflation. C. higher aggregate prices. D. lower aggregate prices.