What is positive and Normative Statements?
Usually acceptable to all economists
Usually use data and empirical evidence,
The inflation rate in 1999 is 2.5 per cent;
The Quantity Theory of Money can be used to explain why inflation occurs in an economy.
The Index of Retail Price of UK in 1986 is 103.4
货币数量论可以用来解释为什么一个经济体会发生通货膨胀。
Often drawn from the economist’s personal views, political beliefs and ethics.
The government should cut fuel tax to reduce the rate of inflation;
Public sector workers should reduce their demands for higher wages
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