Which of the following is a normative 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

A normative statement is a prescriptive statement that expresses an opinion about what should be done. Option A expresses an opinion on what the central bank should do, making it a normative statement. Option B is a positive statement that describes the relationship between the money supply and unemployment rate, while option C is a positive statement that describes a specific event. Option D is a normative statement as well, but it is not related to macroeconomic policies.

Which of the Following Is a Normative Macroeconomics Statement