Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off

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Classify each of the following statements as positive or normative. Explain.

a. Society faces a short-run trade-off between inflation and unemployment.

b. A reduction in the rate of growth of money will reduce the rate of inflation.

c. The European Central Bank should reduce the rate of growth of money.

d. Society ought to require welfare recipients to look for jobs.

e. Lower tax rates encourage more work and more saving.

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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