Identify Whether the Following Statements Are Positive or Normative Economic

question 22

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 economic situation would be to decrease the unemployment rate by decreasing the interest rate."
(B)"The government increased taxes in order to decrease the budget deficit and improve economic growth."
(C)"Taxes on businesses decreased production in some industries in the short run."
(D)"The government should pursue a low-inflation policy by restraining the growth of the money supply."

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Definitions:

Stock Price

The cost of purchasing a single share of a company, which fluctuates based on market conditions and investor perceptions.

EBIT

Earnings Before Interest and Taxes represents a company's profit, encompassing all revenues and costs apart from interest and taxes.

EPS

Earnings per share. A firm’s earnings stated on a per-share outstanding basis. An important measure of business performance in the stock market.

Equity

Ownership interest in a company, represented by shares that entitle holders to a share of the company's profits.