Which of the Following Is a Normative Macroeconomics Statement

question 7

Multiple Choice

Which of the following is a normative macroeconomics statement?

• A) The central bank should increase the nation's money supply.
• B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
• C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales.
• D) The local government ought to spend more on recreational facilities.

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Definitions:

Inductive Thinking

Inductive Thinking is a reasoning process that involves making generalizations based on specific observations or instances.

Deductive

A logical process in which a conclusion follows necessarily from the stated premises; involves reasoning from the general to the specific.

Preoperational

A stage in Jean Piaget’s theory of cognitive development, where children from about 2 to 7 years old learn through pretend play but still struggle with logic and taking the perspective of other people.

Reductive

A method or approach that simplifies complex systems or phenomena by breaking them down into their most basic components or aspects.