Which of the following is a normative economic statement?
A) The Federal budget deficit rose by 120 billion dollars
B) The unemployment rate is expected to fall next month
C) A trade surplus of 200 billion dollars should be our policy goal
D) The federal funds rate was reduced by half a percentage point

Question

Quizplus · Accepted Answer

A normative economic statement expresses a value judgment about what ought to be done. Option C states a policy goal, which is normative in nature. Options A, B, and D are positive economic statements, which describe what is happening or what has happened in the economy.

Which of the Following Is a Normative Economic Statement