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topjm [15]
3 years ago
9

What is the primary difference between normative and positive economics?

History
1 answer:
Olenka [21]3 years ago
6 0

Answer:

Governments use normative economics, and businesses use  positive economics.

Explanation:

Normative economics concentrates on the importance of economic equity, or what the marketplace 'should be' or 'ought to be' whether positive economics is based on experience and cannot be confirmed or disallowed, normative economics is established on worth judgments. An example of positive economics is, an increment in tax rates eventually results in a reduction in total tax wealth. On the other hand, normative economics is, unemployment hurts an economy more than inflation.

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