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Unformatted text preview: been in the past o Ex.- Prada purse sales at Macys in this quarter are 10% higher than in the last quarter o Statements can be verified statistically o Conditional statements are forecasts based on careful analysis of economic behaviour o Often take to form of if x occurs then y will follow o Ex.- If the price of iphones decreases the quantity purchased will increase o The forecast can either be confirmed or refutes by referring to known facts or observed the accuracy of prediction Normative (Policy) o Deals with statements that contain value judgements o Expresses what economists think should be the case o Ex.- Municipal governments should provide more housing for homeless people. o Not a statement of fact, it is open for debate...
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- Fall '07