Saying that an unemployment rate of 8% is too high is:
A)normative analysis.
B)positive analysis.
C)the circular-flow model.
D)an example of absolute advantage.

Question

Quizplus · Accepted Answer

Normative analysis involves making value judgments and expressing opinions on whether an economic situation is good or bad. Saying that an unemployment rate of 8% is too high is a value judgment and therefore falls under normative analysis. Positive analysis, on the other hand, involves objective analysis and does not involve value judgments. The circular-flow model and absolute advantage are unrelated to this statement.

Saying That an Unemployment Rate of 8% Is Too High