QQuestionEconomics
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."
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Answer
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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.
Step 3:: Identify the normative statement.
Option a. "The government should increase spending to stimulate the economy" is the normative statement because it suggests a course of action (increase spending) and a value judgment (stimulate the economy) related to the economy.
Final Answer
The normative statement about the economy is option a. "The government should increase spending to stimulate the economy."
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