Determine Whether Each of the Following Is a Positive or Normative

question 44

Short Answer

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.

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Definitions:

Major Industries

The primary sector of the economy that dominates a country's production output, employment, or revenue.

Custodial

Pertaining to the legal right or responsibility to care for someone or something, often used in the context of child custody or managing assets.

Scientific Management

A management theory that applies scientific methods to analyze and improve efficiency in the workplace, emphasizing tasks optimization and labor productivity.

Economic Rewards

Financial or material incentives used to motivate or reward individuals for their performance or behavior, commonly employed in work and education settings.