"Any tax cut to increase demand for output should favor lower-income people" is a ________ statement about ________ policy.

Question

Quizplus · Accepted Answer

Normative analysis addresses the question of whether a policy should be used, and inevitably involves the values of the person doing the analysis. Normative statement comments on the desirability of an action, and often includes terms such as should. Fiscal policy refers to decisions that determine the government's budget, and includes decisions on the amount taxes collected.

"Any Tax Cut to Increase Demand for Output Should Favor