Read the following conversation and explain who made normative economic statements and who made positive economic statements.
Avery: My tax bill is too high!
Brian: Mine is, too. The government should cut taxes.
Carla: Cutting taxes will generate a bigger budget deficit.
Dan: If the government cuts taxes, then the economy will overheat and there will be inflation.
Eric: Inflation is bad.
Fred: Inflation means that goods will be more expensive.
Gary: If the government matches a tax cut with spending cuts, then the size of the deficit will not change.

Question

Read the following conversation and explain who made normative economic statements and who made positive economic statements.
Avery: My tax bill is too high!
 Brian: Mine is, too. The government should cut taxes.
 Carla: Cutting taxes will generate a bigger budget deficit.
 Dan: If the government cuts taxes, then the economy will overheat and there will be inflation.
 Eric: Inflation is bad.
 Fred: Inflation means that goods will be more expensive.
 Gary: If the government matches a tax cut with spending cuts, then the size of the deficit will not change.

Quizplus · Accepted Answer

The Answer of Read the following conversation and explain who made normative economic statements and who made positive economic statements.
Avery: My tax bill is too high!
 Brian: Mine is, too. The government should cut taxes.
 Carla: Cutting taxes will generate a bigger budget deficit.
 Dan: If the government cuts taxes, then the economy will overheat and there will be inflation.
 Eric: Inflation is bad.
 Fred: Inflation means that goods will be more expensive.
 Gary: If the government matches a tax cut with spending cuts, then the size of the deficit will not change.

Read the Following Conversation and Explain Who Made Normative Economic