Thank you! Here's a summary for myself: The aggregate demand curve is downward sloped; hence, the inverse relationship between price level and aggregate demand and price level and real GDP. Aggregate demand can be calculated via the equation C (consumption) + I (investment) + G (government spending) + (X-M) total exports. There are three reasons to why changes in the price levels can affect variables in the equation. These include the wealth effect (1) (purchasing level is inversely related to the price level and positively correlated to real GDP affecting consumption), the trade effect (2) (exports become more competitive when price level falls and imports become less competitive resulting in increase X and decrease in M) and the interest effect (3) (interest rates can be used to combat inflation as well as lower interest rates during lower inflation can be used to stimulate consumption and investment, as well as reduces the value of the exchange rate which increases the net export performance in X-M)
Also, AD curve shifts aren't affected by price level changes; although they are related to changes in C, G, I or X-M, these changes are caused by events independent of price level changes
Thank you so much sir!! I suggest you to play more ads between the video to generate more income because you desereve it!! You are the perfect teacher I have ever seen!
Gabriel Pazos because we’re talking about the aggregate demand. It’s the demand for all the final goods in the economy. You can’t substitute all final goods for something else.
Thank you! Here's a summary for myself: The aggregate demand curve is downward sloped; hence, the inverse relationship between price level and aggregate demand and price level and real GDP. Aggregate demand can be calculated via the equation C (consumption) + I (investment) + G (government spending) + (X-M) total exports. There are three reasons to why changes in the price levels can affect variables in the equation. These include the wealth effect (1) (purchasing level is inversely related to the price level and positively correlated to real GDP affecting consumption), the trade effect (2) (exports become more competitive when price level falls and imports become less competitive resulting in increase X and decrease in M) and the interest effect (3) (interest rates can be used to combat inflation as well as lower interest rates during lower inflation can be used to stimulate consumption and investment, as well as reduces the value of the exchange rate which increases the net export performance in X-M)
Also, AD curve shifts aren't affected by price level changes; although they are related to changes in C, G, I or X-M, these changes are caused by events independent of price level changes
i love u
Thank you so much sir!!
I suggest you to play more ads between the video to generate more income because you desereve it!!
You are the perfect teacher I have ever seen!
He needs to stretch the vid to 8 mins.
Better idea: daddy dal make a patreon so we could support you plz
Shush
No
Lowe us please
you can only put extra ads on a video if the video is 8 minutes, otherwise you can only put 2 ads
Goat Econ Teacher!!! Keep up the hard work!
I appreciate your style of teaching as it did fill that gap for me, and help me understand aggregate demand.
HOLY COW this was if not the best video ive seen on this topic, reviewing for my ap exam next week you sir are a life saver
Awesome video, concise and clear. It really helped clear up a confusion I had in the trade effect. Than you :)
Sir the way you explaining is outstanding mind-blowing
Thank you so much for this clearly concept 👏👍
Sir will you provide pdf
Amazing video so educational my daddy my superhero 😕😕😕
When the teachers are being paid to spit out rubbish compared to this legend.
i love this guy
Thank you so much
Dal do i get extra credit if i talk about your downward slops instead?
Great video, thank you very much!
Anyone else sees this perfectly at 1.25x?
You are a genius
Excellent Vidoes
much love bro
class video
Thanks sir, can the effects be used as evaluation?
Thank you so much sir
AD is the total demand for a given countries goods and services at a given point in time. AD is a measure of quantity though - not spending
Thank you!
Great explanation thanks
Thanks
Where is the next video?
BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST
Why does the substitution effect is not a price determinant of the Aggregate Demand?
Gabriel Pazos because we’re talking about the aggregate demand. It’s the demand for all the final goods in the economy. You can’t substitute all final goods for something else.
candykiss024 thank you!!!
This is macro not micro!!!
fab 🔥🥺🥰
Lovely
what does the Y on the x-axis represent
Read GDP
Real GDP
I thought that 'Y' meant 'income'. M.
yes, in this case y=real national income (which is real GDP)
😐❤️👍🏻
Is the video lagging for anyone else?
Just you
@@ethanashadu3916bit late
First
thanks