Which of the following is a normative macroeconomic statement?
A) An increase in government spending will reduce unemployment.
B) An active government policy should be employed to maintain a healthy economy.
C) The unemployment rate is 10 percent.
D) There is a positive relationship between inflation and the rate of growth of money
E) Gross domestic product grew 3 percent this year.

Question

Quizplus · Accepted Answer

This statement expresses an opinion on what should be done in terms of government policy, rather than describing what is currently happening in the economy (which would be a positive statement).

Which of the Following Is a Normative Macroeconomic Statement