It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories. Positive macroeconomics mcconnell pdf download as science, concerns analysis of economic behavior.
Positive economics as such avoids economic value judgements. For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy ought to be followed.
Still, positive economics is commonly deemed necessary for the ranking of economic policies or outcomes as to acceptability, which is normative economics. Positive economics is sometimes defined as the economics of “what is”, whereas normative economics discusses “what ought to be”. Milton Friedman in an influential 1953 essay.
The logical basis of such a relation as a dichotomy has been disputed in the philosophical literature. Feminist Economics such as Julie A.
Nelson, Geoff Schneider and Jean Shackelford, and Diana Strassmann, dispute the idea that economics can be completely neutral and agenda-free. Positive economics concerns what is.