Determine whether each of the following is a positive or normative statement. (a) The Fed should lower interest rates to increase economic growth, because we're in a recession. (b) Higher government budget deficits cause higher interest rates
(c) The trade deficit should decline because of the fall in the value of the dollar. (d) Because of our high inflation rate, we must reduce the rate of money growth. (e) A generous unemployment insurance system is a primary cause of high unemployment in Europe. (f) Increased average labor productivity in a country should lead to faster growth. (g) Government budget deficits are too high in the United States and should be reduced.
(a) Normative
(b) Positive
(c) Positive
(d) Normative
(e) Positive
(f) Positive
(g) Normative
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A) Asset management companies B) Hedge funds C) Private equity funds D) Venture capital funds
Which of the following moves the wage above its equilibrium value?
a. both compensating differentials and efficiency wages b. compensating differentials but not efficiency wages c. efficiency wages but not compensating differentials d. neither compensating differentials nor efficiency wages