Q
QuestionEconomics

"Which of the following is a normative statement about the economy? a.The government should increase spending to stimulate the economy. b.The economy is growing at a rate of 2%. c.The economy is expected to grow at a rate of 2% next year. d.The government has increased spending to regulate the economy."
3 months agoReport content

Answer

Full Solution Locked

Sign in to view the complete step-by-step solution and unlock all study resources.

Step 1
: Identify the normative statement about the economy.

A normative statement is a statement that prescribes what ought to be or what is good. It is based on moral or value judgments. In this problem, we are looking for an option that suggests a course of action or a value judgment related to the economy.

Step 2
: Examine the options.

Option b. "The economy is growing at a rate of 2%" is a positive statement, not normative, as it describes a fact about the economy. Option c. "The economy is expected to grow at a rate of 2% next year" is also a positive statement, not normative, as it describes a prediction about the future. Option d. "The government has increased spending to regulate the economy" is a statement about a fact that has occurred, not a value judgment or a course of action.

Final Answer

The normative statement about the economy is option a. "The government should increase spending to stimulate the economy."

Need Help with Homework?

Stuck on a difficult problem? We've got you covered:

  • Post your question or upload an image
  • Get instant step-by-step solutions
  • Learn from our AI and community of students