Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising

If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) B to A B) A to E C) C to B D) E to A E) D to C

Technological unemployment is a macroeconomic phenomenon that occurs when

A) unemployment changes due to the effects of technology in high-technology industries. B) unemployment changes due to the effects of monetary and fiscal policy in the New Economy. C) hysterisis. D) Eurosclerosis. E) unemployment changes as a result of technological change.