Robert and Janet are discussing unemployment and inflation in their country. On the basis of a recent newspaper report, Robert claims that a 5% reduction in unemployment will lead to a 2% rise in inflation. On the other hand, Janet insists that inflation is a far bigger problem than unemployment and should be addressed with prime importance. Classify Robert\'s and Janet\'s statements as positive or normative . Briefly explain how you make the distinction between the two statements. Solution statement given by Robert is a positive statement and the statement given by Janet is normative. Positive statements are based on facts and can be tested for approval and disapproval. On the other hand nornative statements are based on opinion and can not be tested. .