Normative Economic Statements

question 163

Multiple Choice

Normative economic statements

• A)always contain value judgments.
• B)violate the law of ceteris paribus.
• C)are easily testable.
• D)are usually wrong.

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Definitions:

Short-Run Phillips Curve

A graphical representation showing the short-term trade-off between inflation and unemployment rates.

Inflation

The rate of increase in the collective pricing for goods and services, lessening consumer purchase strength.

Less Optimistic

Feeling or expressing a lower expectation that good events will occur or that negative events will not happen.

Phillips Curve Diagram

A graphical representation showing the inverse relationship between the rate of inflation and the rate of unemployment in an economy over time.