Question

Which of the following statements would you consider to be a normative one?(a) Faster economic growth result if an economy has a higher level of investment(b) Changing the level of interest rates is a better way of managing the economy than using taxationand government expenditure.(c) Higher levels of unemployment will lead to higher levels of inflation(d) The average level of growth in the economy was faster in the 1990s than the 1980s

Answer 1

option B is correct

Answer 2

option (B)is the correct