'A government deficit will reduce unemployment and an increase in prices.' This statement is _____.

positive

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normative

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incomplete

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none of these

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Solution

The correct option is A positive
'A government deficit will reduce unemployment and an increase in prices.' This statement is positive.
Positive statements study the facts of life i.e. it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions. Since the statement is not giving any suggestions. Thus it is a positive statement.

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