Which of the following is a statement with positive economic analysis?
A) Lower wages increase employment and reduce the unemployment rate.
B) Slower money growth reduces inflation.
C) A reduction in the size of the budget deficit will reduce interest rates.
D) all of the above

Question

Quizplus · Accepted Answer

All the options (A, B, and C) are examples of positive economic analysis because they describe relationships between economic variables without making judgments about what ought to be.

Which of the Following Is a Statement with Positive Economic