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Nature has provided the potential to carry out various kinds of "natural experiments" in the form of
Depression
A severe and prolonged downturn in economic activity, characterized by significant declines in GDP, high unemployment, and deflation.
Money Demand
The total amount of money that households and businesses want to hold at any given time, depending on interest rates, income levels, and economic activity.
Price Level
An index that measures the average of prices of goods and services in an economy, often used to evaluate inflation or deflation.
Money Demand Curve
A graphical representation showing the relationship between the quantity of money people want to hold and the interest rate, under the assumption all other factors remain constant.
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