Which of the Following Are Positive Economic Statements and Which

question 148

Essay

Which of the following are positive economic statements and which are normative economic statements?
a.An increase in the minimum wage causes unemployment.
b.The government should raise the minimum wage above $7.25 per hour.
c.The prolonged recession has caused the unemployment rate to reach a 30-year high.
d.Interest rates need to be lower for the economy to emerge from the recession.
e.Inflation has decreased since the onset of the recession.
f.Once the recession has ended,interest rates should increased to assure that inflation does not go up.

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Definitions:

Deep Brain Stimulation

A neurosurgical procedure involving the implantation of a medical device called a brain pacemaker, which sends electrical impulses to specific parts of the brain.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Prefrontal Lobotomy

A surgical procedure once used to treat mental disorders, involving the removal or severing of connections to the prefrontal cortex of the brain, now largely discredited due to its severe side effects and ethical issues.

Psychodynamic Therapy

A therapeutic approach that emphasizes unconscious processes and past experiences in shaping current behavior.