30. Which of the following statements is an example of normative economics? a. The United States should pass a value-added tax, since this is the tax that will work best. b. A value-added tax system will add $10 billion to the administrative costs of the U.S tax system. c. It can be demonstrated that value-added taxes increase the tax burden on less wealthy households. d. A value-added tax would generate $200 billion in revenue each year. e. Two other countries have value-added tax systems. 31. Inflation means that The aggregate level of output increases b. The unemployment rate increases c. The aggregate price level rises over time d. Consumers' purchasing power increases over time e. Workforce participation increases. 32. An economic contraction a. Is another term for an economic boom b. Indicates that the economy is experiencing an increase in the level of employment C. Is not part of the business cycle d. Occurs when output is falling e. Always occurs after the trough in the business cycle 33. An economic expansion a. Is associated with an increase in the unemployment rate b. Indicates that the economy is experiencing a decrease in the level of unemployment c. Is that part of the business cycle between the peak and the trough d. Is not part of the business cycle e. Is associated with a decrease in the employment rate 34. A recession is best described as a. A decrease in the price level b. That part of the business cycle between the trough and the peak C. Any decrease in output and unemployment d. That part of the business cycle between the peak and the trough e. An increase in employment and a decrease in output