The development of economic theory to explain the behavior of important economic variables is called
A) normative economics.
B) positive economics.
C) aggregate economics.
D) None of the above.

Question

Quizplus · Accepted Answer

Positive economics involves the development of economic theory, models and explanations to explain the behavior of economic variables. Normative economics involves making value judgments about how the economy should operate, while aggregate economics involves the study of the economy as a whole.

The Development of Economic Theory to Explain the Behavior of Important