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The Long-Run Behavior of Natural Resource Prices
Observations
– Exhaustion of copper has increased by a hundred fold from 1880 through 1998 signifying a large increase in demand.
– The actual price for copper has stayed relatively constant.
Changes in Market Equilibrium
Conclusion
– Reduction in the costs of production have increased the supply by more than enough to balance the increase in demand.
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THERE IS PRESSURE ON THE CENTRAL BANK TO INCREASE MONEY SUPPLY WHAT WOULD BE THE EFFECT ON THE MACROECONOMIC VARIABLE
Figure 3.7 in the above textbook. Using the figure in guide, determine the approximate size of the market surplus or shortage that would exist at a glance of a) $40 b) $20
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Real Interest Rate: Interest rate on a loan, adjusted for rate of inflation. Real interest rate represents real burden of an interest payment. Real interest rates should be positiv
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