Which of the following statements is related to positive economics?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e An increase in money supply implies a price rise in an economy.
- A rise in prices in an economy is implied by an increase in the money supply.
- The description, quantification, and explanation of economic processes, expectations, and related phenomena are the main goals of the field of positive economics.