Abstract

This paper shows the relationship between the economic activity level and relative prices in Brazil during the 80’s. In this two sectors model the monthly computed economic variables are: index of industrial production, index of agricultural prices and index of industrial prices. These variables were seasonally adjusted. The result suggests that agricultural prices decrease relatively to industrial prices during periods of economic crises, while the agricultural prices increase relatively to in-dustrial prices during periods of economic growth, accordingly to the model used on the analysis.