Question

Find a normative statement that could be mistaken as a positive statement by researching news sites, economic journals, political blogs, and so on. Write out the statement and analyze it as follows:

• Is the statement supported by facts? Write a true positive statement that would support the normative statement.
• Now write a positive statement that would not support the normative statement.
• Evaluate your two positive statements and determine whether you agree or disagree with the normative statement above. Explain your stance.

Answer 1

Normative Statement : Demonetisation in India decreased the inflation  

This statement was positively assumed and perceived as demonetisation was intended to ease inflation Which wasn't truth . The truth was to evade and cleanse black money from system.

The above normative statement diesnt demonstrate facts. A good positive statement is : Demonetisation decreased CPi inflation from 5 percent to 4.7 percent in 2016 Q2 but core CPi increased from 5.5 percent to 6.6percent.

Now if we compare both normative and positive statement it is clearly visible that CPi inflation eased but core CPi inflation increased which means demonetisation did not completely ease inflation .

Hence normative statement without facts can be clearly misleading and ambigous .