Jane is currently developing a model to explain the national unemployment rate. This is an example of
A) a microeconomic topic.
B) normative analysis.
C) positive analysis.
D) how people act in an irrational manner.

Question

Quizplus · Accepted Answer

Developing a model to explain the national unemployment rate falls under positive analysis, which involves the study of what is or what has been happening in an economy. It is not a microeconomic topic, which focuses on individual economic behavior, nor is it normative analysis, which evaluates what should be happening in an economy. It also does not pertain to how people act in an irrational manner.

Jane Is Currently Developing a Model to Explain the National