Which of the following is a positive macroeconomics statement?
A) The central bank should increase the nation's money supply.
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales.
D) The local government ought to spend more on recreational facilities.

Question

Quizplus · Accepted Answer

B is a positive macroeconomics statement because it describes a positive correlation between an increase in money supply and a decrease in unemployment, which is a desired outcome in macroeconomic policy. The other options are either normative statements or do not relate to macroeconomics. A is a normative statement because it states what the central bank "should" do, which is a matter of opinion. C is a microeconomic statement because it focuses on the actions of specific companies. D is also a normative statement because it expresses an opinion on what the local government "ought" to do.

Which of the Following Is a Positive Macroeconomics Statement