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Prices rise when the quantity of money rises rapidly"" is an example of a a. normative economic statement. b. statement that contradicts one of the basic principles of economics. c. negative economic statement. d. positive economic statement.\

Respuesta :

Answer:

POSITIVE ECONOMIC STATEMENT

Explanation:

Positive Economics deals with objective actual fact based data, describing economic issues & cause effect relationship between variables, which can be verified.

Normative Economic deals with subjective opinionated 'should be' view point, suggesting solutions to economic issues, which cannot be verified.

Eg: Positive Economics - India GDP growth in 2019 was xyz%.

Normative Economics - India GDP growth in 2020 should be abc%

'Prices rise when the quantity of money rises rapidly' : is an objective statement - describing actual relationship between two economic variables (Price, Money Quantity), which can be verified (by variables co-movement).

So, It is a Positive Economic Statement.

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