Learning Contents:                                                              ·          Positive and Normative Statements ·          Positive and Normative Economics ·          Difference between Positive and Normative Economics Introduction Economists usually try to explain how the economy works and also concerned with how it should work. They are eager to research on various economic issues like finding the cause and effect of an economic issue. For e.g.   Why did unemployment increase in 2008 and 2009? They also make policy suggestions or recommendations. For e.g. what should the government do in response to an increase in unemployment?   The first statement is an example of positive statement which is objective that is based on theories, facts, and evidence. It indicates the actual situation or scenario in an economy. We could ascertain from the first statement is the level of employment is normally based on the overall production in an economy (GDP), the inc