Question

Categorize examples of either positive or normative economics,

and as examples of either macroeconomics or microeconomics and why is that?

1. Monetary policymakers should do everything they can to reduce the unemployment rate.

2. If there is an increase in the price of gasoline, the quantity purchased will decrease.

3. Budget deficits typically lead to higher rates of inflation.

4. It is important to invest in preschool programs to improve labor-market outcomes for individuals when they reach adulthood.

Answer 1

Answer 2

ANSWER :

First one : 

Normative since it makes a suggestion or recommendation. It is    Macroeconomics as it concerns at the national level.

Second one : 

Positive  since it is stated as a fact and true. It is Microeconomics as it concerns at unit levels.

Third one : 

Positive  since it is stated as a fact and true. It is Macroeconomics as it concerns at national level.

Fourth one : 

Normative since it is an opinion. It is  Macroeconomics as it concerns at the national level.