Economics 9708 · AS & A Level · Economic methodology

Economic methodology — practice question

Which of the following is a normative statement?

  • AAggregate demand will increase following a decrease in interest rates.
  • BA rise in unemployment will decrease inflationary pressures.
  • CThe incentive to work will rise if benefit payments are reduced.
  • DUnsustainable economic growth is more harmful to the economy than hyperinflation.

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