What is Positive Economics?

Positive economics is the study of what and why an economy operates as it does. It is also known as Descriptive economics and is based on facts which can be subjected to scientific analysis in order for them to be accepted.

It is based on factual information and uses statistical data, and scientific formula in determining how an economy should be. It deals with the relationship between cause and effect and can be tested.

Positive economic statements are always based on what is actually going on in the economy and they can either be accepted or rejected depending on the facts presented.

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