What is the Council of Economic Advisers ?

Suppose an economist develops an economic model and finds that it works great in theory but fails in practice. What should the economist do next?

Determine whether each of the following shifts is likely to increase or decrease the prevalence of rent-seeking.

a. The spread of smartphones enables more widespread access to information.

A production possibilities frontier can shift outward if

a. resources are shifted from the production of one good to the production of the other good.

b. the economy abandons inefficient production methods in favor of efficient production methods.

c. government increases the amount of money in the economy.

d. there is a technological improvement.

Classify the following statement as positive or normative. Explain.

Lower tax rates encourage more work and more saving.

Classify the following statement as positive or normative. Explain.

Society ought to require welfare recipients to look for jobs.

Classify the following statement as positive or normative. Explain.

The Federal Reserve should reduce the growth rate of the money supply.

Classify the following statement as positive or normative. Explain.

A reduction in the growth rate of the money supply will reduce the rate of inflation.

Use the following system of linear equations.
Equation 1: x - 2y = 2
Equation 2: 5x - 4y = -8
Solve the system by graphing.

Use the following system of linear equations.
Equation 1: x - 2y = 2
Equation 2: 5x - 4y = -8
Solve the system using the linear combination method. Show your work.

Solve each equation, inequality, or system of equations.

Solve the system analytically. If the equations are dependent, write the solution set in terms of the variable z.

$$x+2y+3z=8$$

$$3x-y+2z=5$$

$$-2x-4y-6z=5$$

What is the difference between a positive and a normative statement? Give an example of each.

Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of money growth will reduce the rate of inflation. c. The Federal Reserve should reduce the rate of money growth. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.