XECO 212 WeeK 1 (DQ) 1 - 8052

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Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.

 

Provide one quote and its context for both a positive and normative statement. Explain your choices.

 

 

I retrieved the following quotes from the New York Times. In the article, Bernanke sees hopeful signs, but no quick recovery.

 

“Even after a recovery gets under way, the rate of growth of real economic activity is likely to remain below its longer-run potential for a while” he predicted. “We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly.”

This statement is a normative statement because this is Ben S. Bernanke's belief and what the economy does. It is a matter of opinion and he states that it is a process and that the economy will not heal completely for a while. One can argue that the economy will recover quickly. There is really no right or wrong answer to this and only time will tell if this economist is right on target with his assumption.

 

Sales of existing homes have been “fairly stable” since late last year, in part because plunging home prices have made houses more affordable and interest rates on some fixed-rate mortgages have fallen below 5 percent.

This is a positive statement because this is a statement of fact that can be proven or disapproved with evidence. This is a direct statement made and it is supported with facts. The fact that existing homes have been fairy stable is due to the facts that are given in the context. This has been proven so therefore the quote is a legitimate positive statement.

 

 

Solution Description

Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.

 

Provide one quote and its context for both a positive and normative statement. Explain your choices.