Economics Problem
Taken directly from the online homework for my macroeconomics class:
The economy is in the midst of a recession. Senator Bowtie argues that a tax cut would be the best way to stimulate employment this year. Senator Pinstripe counters that while a tax cut would indeed stimulate employment this year, it would also increase the deficit, which would hurt long-run economic growth, and is therefore a bad idea. Senator Bowtie responds that stimulating employment this year is more important than long-run economic growth. The disagreement between Senator Bowtie and Senator Pinstripe is an example of a:
A. Positive, macroeconomic disagreement
B. Normative, microeconomic disagreement
C. Normative, macroeconomic disagreement
D. Positive, microeconomic disagreement
The economy is in the midst of a recession. Senator Bowtie argues that a tax cut would be the best way to stimulate employment this year. Senator Pinstripe counters that while a tax cut would indeed stimulate employment this year, it would also increase the deficit, which would hurt long-run economic growth, and is therefore a bad idea. Senator Bowtie responds that stimulating employment this year is more important than long-run economic growth. The disagreement between Senator Bowtie and Senator Pinstripe is an example of a:
A. Positive, macroeconomic disagreement
B. Normative, microeconomic disagreement
C. Normative, macroeconomic disagreement
D. Positive, microeconomic disagreement