Positive economics: how the economy works
Can be true or false
Can be tested by looking at the facts
Normative economics: what should be
Value judgments, identify problems, and prescribe solutions
Cannot be proved or disproved by the facts alone
Saturday, October 1, 2011
Positive and Normative Economics
Positive economics: how the economy works
Can be true or false
Can be tested by looking at the facts
Normative economics: what should be
Value judgments, identify problems, and prescribe solutions
Cannot be proved or disproved by the facts alone
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