Identify Whether the Following Statements Are Positive or Normative Economic

question 116

Essay

Identify whether the following statements are positive or normative economic statements, and explain why you categorized them in that way.
(A) "The best way to improve the econamic situation wauld be to decrease the unempldyment rate by decreasing the interest rate."
(B) "The guverment increased taxes in arter to decrease the budiet deficit and ingardve ecanamic grawth."
(C) "Tares an businesses decreased production in 5 ame industries in the shart run."
(D) "The gaverment should pursue a law-infletion policy by restraining the growth of the money suyply."

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Definitions:

Sales Revenues

The revenue a company earns from selling products or offering services.

Sales Tax Rate

The percentage at which sales tax is levied on the sale of goods and services, varying by jurisdiction and the type of product or service.

Working Capital

The difference between a company's current assets and its current liabilities.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or over the course of an operating cycle, depending on which period is greater.