Normative economics is
a. an event is explained according to the laws of economics.
b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone.
c. the study of foreign countries.
d. the study of our banking system.
Answer: b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone.
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Identify the comovement (i.e., direction and timing) of the following variables over a business cycle:
(a) industrial production (b) unemployment (c) nominal interest rates (d) nominal money supply growth (e) investment
A larger interest rate spread in 2003-2006 is one of the factors that led to the recession of 2007
a. True b. False Indicate whether the statement is true or false