[This is part of the series: The Complete Guide To Economics 101.]
What is positive economics?
Well, in general, talk about economics can be broken down into two categories: Positive Economics and Normative Economics.
While normative economics deals with the “ought.”
Positive Economics is economic study centered around the reality of what “is” – simply stating things as they are.
Examples of positive economics include:
- The inflation rate is 3 percent.
- The unemployment rate is 6 percent.
- There is a short-term trade-off between inflation and unemployment.
- Fiscal policy provides no real stimulus for nations with flexible exchange rates and free trade.