The Statement "Cutting Government Spending Is the Best Way to Boost

question 159

True/False

The statement "Cutting government spending is the best way to boost consumer confidence" is an example of normative economics.

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Definitions:

Price Takers

Firms or individuals who accept the market price as is because they do not have enough market power to influence the price of the goods or services they sell.

Downward-Sloping Demand

A concept in economics that indicates demand for a good or service decreases as its price increases, assuming all other factors remain constant.

Output

The amount of goods or services produced by a company, industry, or economic system.