Which of the Following Are Positive Economic Statements and Which

question 72

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 increase to assure that inflation does not go up.

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Definitions:

Adaptation

The process by which organisms adjust to changes in their environment for better survival.

Divorce Rates

The statistical measure showing the number of divorces occurring among the population during a given year, often per 1,000 people.

Remarry

The act of marrying again after the dissolution of a previous marriage, through divorce or widowhood.

Constructive Communication

A method of exchanging ideas and information that fosters positive engagement, understanding, and problem-solving.