Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. A reduction in the rate of growth of money will reduce the rate of inflation. The Federal Reserve should reduce the rate of growth of money. Society ought to require welfare recipients to look for jobs. Lower tax rates encourage more work and more saving.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter1: The Role And Method Of Economics
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Classify each of the following statements as positive or normative. Explain.

  1. Society faces a short-run trade-off between inflation and unemployment.
  2. A reduction in the rate of growth of money will reduce the rate of inflation.
  3. The Federal Reserve should reduce the rate of growth of money.
  4. Society ought to require welfare recipients to look for jobs.
  5. Lower tax rates encourage more work and more saving.
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