Understanding the Distinction Between Positive and Normative Economic Statements Is

question 128

Multiple Choice

Understanding the distinction between positive and normative economic statements is important because it

• A) enables us to derive better forecasts of macroeconomic aggregates such as GDP
• B) explains why economics is not a physical science
• C) is the primary distinction between macroeconomics and microeconomics
• D) provides a framework for understanding differences among economists
• E) enables us to see the rationale behind economic models