The statement that a country's rate of GDP growth is influenced by individuals' saving behaviour is an example of a(n)
A)theory.
B)normative statement.
C)prediction.
D)economic law.
E)variable.

Question

Quizplus · Accepted Answer

The statement is an economic theory, as it suggests a cause-and-effect relationship between saving behaviour and GDP growth. It is not a normative statement, which makes a value judgment, a prediction, which forecasts future events or outcomes based on current data, an economic law, which describes a relationship that is always true, or a variable, which is a factor that can change and affect outcomes.

The Statement That a Country's Rate of GDP Growth Is