"Automatic stabilizers create budget deficits when the economy goes into a recession" is a normative statement.

Question

Quizplus · Accepted Answer

This statement is actually a positive or descriptive statement. Automatic stabilizers, such as unemployment insurance and progressive tax systems, may increase budget deficits during a recession because they result in increased government spending and reduced tax revenue, but whether or not this is desirable or good policy is a normative question.

"Automatic Stabilizers Create Budget Deficits When the Economy Goes into a Recession