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
D
You might also like to view...
If the savings rate in an economy is 30%, and the GDP of the economy is $1,000, then the level of investment in the economy will be:
A) $330. B) $150. C) $600. D) $300.
In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?
a. The production possibilities curves for these countries would have shifted outward. b. The production possibilities curves for these countries would have shifted inward. c. The production possibilities curves for these countries would have been unaffected. d. This would have been illustrated by a movement along the production possibilities curves for these countries, but it would not have shifted them.