An economist plays two roles: scientist and policy advisor. As scientists, economists explain the world, and as policy advisors they help improve the world. Because these two roles have different goals, they require different types of language. Economists as scientists make positive claims, whereas economists as policy advisors make normative claims.

Address the following:

• Explain the difference between positive and normative analysis.
• Provide an example of a normative statement or an example of a positive statement from a recent news story.

Part B: Then using Reuters recent positive news about the 3.5% employment rate, and the inflation rate for the year is 3%, indicating a general rise in the prices of goods and services (normative versus positive), and contrast your example with those of yours. What makes the examples different? How do those differences relate to the different roles that an economist plays as a scientist and policy advisor?

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Difference between Positive and Normative Analysis Positive Analysis Positive analysis in economics involves objective and factual statements that des... View the full answer