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Economics (AS & A Level) · Feb / March 2024 · Paper 12 · Question 2

9708Economic methodology

Which statement is a normative statement?

  1. AAggregate demand will increase following a decrease in interest rates.
  2. BA rise in unemployment will decrease inflationary pressures.
  3. CThe incentive to work will rise if benefit payments are reduced.
  4. DUnsustainable economic growth is more harmful to the economy than hyperinflation.

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Correct answer: D. Unsustainable economic growth is more harmful to the economy than hyperinflation.

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