normative economics

Normative economics is concerned with policy and value judgments, distinguishing itself from positive economics, which focuses on factual matters. While positive economics aims for objectivity, normative economics addresses questions about what should be, such as whether price stability should be sacrificed for full employment or if progressive taxation is desirable. It involves evaluating trade-offs between what are considered "good" and "bad" effects, often reflecting personal values or societal goals rather than empirical facts. Economists use normative economics to advise on policy, but it's crucial to recognize that these recommendations are based on value judgments, not purely scientific conclusions.12