Positive analysis:
A. determines whether the consequences of a policy are desirable.
B. recommends whether a policy should be implemented.
C. aims at determining only the economic consequences of a particular policy.
D. depends on the analyst's values.
Answer: C
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Refer to the above figure. The marginal propensity to consume and the marginal propensity to save
A) are 0.75 and 0.25, respectively. B) depend on the level of income. C) are 0.90 and 0.10, respectively. D) are 0.83 and 0.17, respectively.
Which of the following countries experienced substantial inflows of foreign investment capital, with bank lending increasing by 20 percent to 30 percent per year through the mid-1990s?
a. Argentina b. Brazil c. Russia d. Malaysia
For the recessions in the United States since the 1950s
A) inflation has been nonexistent. B) the inflation rate rises on average by about 2.5 percentage points 12 months after a recession begins. C) the inflation rate falls on average by about 2.5 percentage points 12 months after a recession begins. D) deflation occurs.
As a curve approaches a maximum point, the slope will
A) be positive, then negative after the maximum point. B) be negative, then positive after the maximum point. C) remain constant on either side of the maximum point. D) increase before and after the maximum point.