Clubs such as the Boston Red Sox and Detroit Tigers did not take on their first black players until most other clubs had long utilized black players and clubs like the Dodgers and Giants were well on the way to their long run equilibrium number.
When markets get statistically too far out of whack, they must return to long-term equilibrium.
The macroeconomy has a long-run equilibrium natural rate of unemployment and GDP from which unanticipated counter-cyclical policy can scarcely nudge the economy.
FORBES: Thomas Sargent, Rational Expectations And The Keynesian Consensus
By suppressing long-run interest rates, the Fed is distorting asset prices, including housing prices that need to fall to restore long-run equilibrium.
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The spurt in productivity growth in America has pushed up share prices in anticipation of future productivity gains, and also improved the competitiveness of American goods, thus increasing the dollar's long-term equilibrium level.
George Alogoskoufis, an economist at the Athens School of Economics, and Richard Portes, of the London Business School, argue that shifts in portfolios could push the euro temporarily above its long-run equilibrium level.
In Chile a fiscal law obliges the government to run budget surpluses whenever the economy is at full employment and the copper price is above its long-run equilibrium, as estimated by an independent panel.
As lower costs encourage firms to produce more at any given price (ie, the supply curve shifts from S1 to S2 in the chart), the long-term equilibrium level of output will rise and the price level will fall.
In the long term, when equilibrium is reached (which of course it never is but the trend is generally towards it) the profit made by each competitor will be, on average, just enough to keep the capital employed which each competitor is using.
Markets generally do not exceed the upper or lower Bollinger band lines for long and gold needs to revert back to some equilibrium pricing.
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