Author Question: Which of the following statements is an example of positive economic analysis? A) The inflation ... (Read 70 times)

newyorker26 · **on:** Jun 29, 2018

Which of the following statements is an example of positive economic analysis?

A) The inflation rate is too high.
B) The government should worry less about inflation and more about unemployment.
C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus.
D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.

Question 2

Other things being equal, the relationship between price and quantity supplied is

A) negative.
B) constant.
C) positive.
D) non-existent.