00:01
So before we get into the details of what these statements, let's make sure we remember the definition.
00:05
Normative is subjective, opinionated.
00:13
It's a statement about what should be, right? and, you know, about values, about preferences, right? it is about values.
00:26
About values.
00:27
Positive is factual objective and it includes statements about what is, right, without attempting to interpret or to color those statements, right? so a, the fed should reduce money growth.
00:54
This is a normative statement.
00:56
You see the should? that is an opinion.
01:00
It doesn't say that the money growth rate is x or y.
01:05
It says, should.
01:06
We are imposing a value judgment on the costs and benefits and effects of money growth.
01:12
This is normative, right? whenever you see a should, you know you're looking at a normative statement.
01:18
B, development should not hurt social justice.
01:31
Again, we are making a statement about our opinions, about our preferences, about our values, about how the world should be.
01:40
Normative.
01:43
And again, the key giveaway here is should.
01:47
We are saying what we think should be the case, right? we are making a claim about what would be desirable, right? price less than equilibrium will lead to shortage...