One example of positive economics?

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Posted by Sumit Soni 6 years, 11 months ago
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Yogita Ingle 6 years, 11 months ago
Positive economics is a stream of economics that focuses on the description, quantification and explanation of economic developments, expectations and associated phenomena. It relies on objective data analysis, relevant facts and associated figures. Positive economics attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economics theories. For example, consider the following statement: "Though historical data indicates boost in spending if government cuts tax rates to half, the current budget constraints may not allow room for reducing tax rates." It attempts to convey a clear fact citing historical data that can be verified for the stated claim. Such statements can be defined, tested or rejected, and edited depending on the extent and availability of the evidence and form a part of positive economics.
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