Answer to Question #17040 in Microeconomics for saba arshad

Question

an increase in the rate of growth of the money supply will lead to a raise in the price level....is it a positive or normative economics ..explain?

Answer 1

An increase the prices with an increase in the rate of growth of the money supply is a prime example of the positive economic and logical process. Positive economics deals with the disclosure of the content aspect of the phenomena and processes of economic life of society, so disclosure of economic laws and regularities.