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Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 1

9708Economic methodology

What is an example of a normative statement?

  1. AGovernment expenditure is an injection into the circular flow of income.
  2. BGovernment expenditure in India in 2022 was 29% of gross domestic product.
  3. CThe best policy measure to reduce inflation is a reduction in government expenditure.
  4. DThe United States of America is the country with the highest military expenditure.

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Correct answer: C. The best policy measure to reduce inflation is a reduction in government expenditure.

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