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Question
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
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Solution
Government should try to control the rising fiscal deficit is a normative statement.
This is because this given statement involves personal value judgment and cannot be tested and verified.
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RELATED QUESTIONS
Fiscal deficit equals :
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Reason (R): External borrowings increases the Fiscal deficit.
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Fiscal Deficit equals:
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| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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