All of the following statements are examples of normative economic analysis except
A) as the demand for emergency room nurses increases, more students are choosing to enroll in nursing school.
B) to provide better care, doctors should be required to limit the number of patients they see each day.
C) people should be able to choose whether they want to purchase health insurance.
D) prescription drugs are too expensive and the government needs to regulate prices in the pharmaceutical industry.
Question 2
If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the short run before the expected inflation rate changes, the SRPC ________ and the LRPC ________.
A) shifts downward; shifts leftward
B) shifts downward; does not change
C) does not change; shifts rightward
D) shifts upward; does not change
E) does not change; does not change
