Positive economics may mean economic hypothesis that can be tested i.e. either confirmed or rejected as the case may be. However,value judgment may not be resorted and we do have value judgment. Here comes the problems since we all have our own value judgments.
Normative economics cannot be tested as it involves the use of value judgments to assess the performance of the economy.e.g. inflation rate is too high. That expression varies with individual's own situations. Disagreements occur among folks attributable to concerns of normative economic hypothesis since such is not to be confirmed or refuted.
Economic growth: Incomesj of all consumers and firms(after accounting for inflation) are increasing over time. Price stability: to prevent increases in the general price level. Francis Shieh a.k.a. Xie Shihao. December 11, 2007
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