Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased 4 percent because the price of energy fell.
b. The economy grew at an annual rate of 5 percent during the first quarter of this year.
c. If two automobile companies merge, the price of automobiles will rise.
d. An increase in international trade benefits some workers but hurts others.
e. The minimum wage should be increased so that low-income workers can afford to keep up with the cost of living.
E
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The higher the level of inflation, the stronger the impact of reductions in the personal income tax on real GDP
a. True b. False Indicate whether the statement is true or false
Indicate how changes in monetary policy are transmitted to the goods and services market? Discuss for the case of an expansion in the money supply