Essay
Read the following conversation and explain who made normative economic statements and who made positive economic statements.
Avery: My tax bill is too high!
Brian: Mine is, too. The government should cut taxes.
Carla: Cutting taxes will generate a bigger budget deficit.
Dan: If the government cuts taxes, then the economy will overheat and there will be inflation.
Eric: Inflation is bad.
Fred: Inflation means that goods will be more expensive.
Gary: If the government matches a tax cut with spending cuts, then the size of the deficit will not change.
Correct Answer:

Verified
Avery, Brian, and Eric made normative ec...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q111: Economics is a study of how<br>A) people
Q112: To state that the resources of the
Q113: When economists hold factors other than the
Q114: Economists use _ economics to understand how
Q115: The circular flow model is an abstract
Q117: Households purchase goods and services in the<br>A)
Q118: In what market are goods and services
Q119: Economists exclude many interesting economic structures and
Q120: Which of the following is not a
Q121: Which of the following disciplines is not