Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 1 - Limits, Alternatives and Choices - Discussion Questions - Page 21: 5


a) Inflation in Country A is higher than inflation in Country B b) Country A should put in place policies to reduce inflation, because high inflation has many negative effects on the economy

Work Step by Step

For part a), students can write any positive statement. This is a factual statement that describes what is happening in an economy. For part b), students can write any normative statement. This is a judgement statement that suggests what an economy should do.
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