Positive economics questions "What ought to be?" Normative economics predicts the consequences of alternative actions, answering the questions "What is?" or "What will be?"

Question

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Positive economics describes and explains economic phenomena and relationships as they are, answering the question "What is?" or "What will be?". Normative economics, on the other hand, deals with value judgments about what the economy should be like or what particular policy actions should be recommended, thus addressing the question "What ought to be?".

Positive Economics Questions "What Ought to Be?" Normative Economics Predicts