Shifts in aggregate demand | Aggregate demand and aggregate supply | Macroeconomics | Khan Academy

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    Factors that might shift aggregate demand
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ความคิดเห็น • 70

  • @wowowowzzz
    @wowowowzzz 4 ปีที่แล้ว +34

    Can Khan Academy just become an accredited university please? I learn more from this channel than any of my college courses. I'd rather pay Khan and get a degree in one step than pay the university and end up using Khan Academy to actually learn it anyway. Either way, when I can afford to, I will be donating to Khan Academy. Thank you!!!

  • @Austin-zq9sd
    @Austin-zq9sd 7 ปีที่แล้ว +91

    Actually quite insane how amazing these tuts are. Use these to review for the basic eco level courses. If i can watch these the night before a final and get an A. So can you. Especially if you're one to not have interest in these courses.

    • @leejane2186
      @leejane2186 5 ปีที่แล้ว +6

      i watched these the night before my exam too

    • @Stagesme
      @Stagesme 3 ปีที่แล้ว +1

      Night before my exam in an MBA program and my prof hasn't taught me anything all semester. This guy is a life saver!

    • @vilmerzander
      @vilmerzander 2 ปีที่แล้ว +2

      Skipped all lectures, didnt open the "required" course book once (its such a scam), watched videos on youtube for a few days before the test and got a B. I could've spent weeks reading the book, and 4 hours a day watching lectures, or just watching 1 hour of videos on youtube with everything I need for the test. It's insane how the amount of information recieved from a 4 hour long lecture, is less than from a 10 minute youtube video.
      At this point, teachers should honestly just post already made playlists on youtube and tell the students to watch it, then do some exercises. Thats all you need.

    • @araaaiz7
      @araaaiz7 6 หลายเดือนก่อน

      if you can study one night before the final and get an A your uni is too easy.

  • @megapanka
    @megapanka 8 ปีที่แล้ว +44

    Thanks god I found this so I can make sense of what's in my textbooks... rock on sal

  • @michaelwoolfson6501
    @michaelwoolfson6501 4 ปีที่แล้ว +7

    Unreal video. I go to a great business school and have had 25 hours of class and learnt more in this 5 minute video. LFG

  • @user-tw5ek1gg8j
    @user-tw5ek1gg8j 5 ปีที่แล้ว +3

    how does an increase in government spending increase GDP?
    I understand the formula, but how does that work in real life?
    If for instance a government spend more money on let say war, how does that increase GDP?

    • @dragonfurry69
      @dragonfurry69 5 ปีที่แล้ว +2

      The basic idea is that the government purchases get producers to produce more than they would without the government purchases. In your example of war, government buying a tank would increase the output of, say, a car manufacturer. On top of the amount of cars they are already producing, they also produce the tank. This extra sale means more income for the company, which pays workers more (since they worked more hours), and the workers buy more stuff with the extra money.
      In real life, there are arguments to be made that government spending makes producers make less consumer goods (that is, they shift workers and capital away from consumer goods towards whatever the government is buying). In this simple model, however, there is no switching. There is just a homogeneous mass of "output" that increases when consumption, investment, government, or net export spending increases.

  • @edd7531
    @edd7531 10 ปีที่แล้ว +12

    View With Huge Grains of Salt!

    • @xedjflowx
      @xedjflowx 10 ปีที่แล้ว +9

      then why learn it was my first thought

  • @bren5434
    @bren5434 11 ปีที่แล้ว +7

    I love your voice! Also, thanks for the help my professor is a mess!

  • @shockoo
    @shockoo 11 ปีที่แล้ว +2

    The strong resentment of Economic Theory in these videos is blatantly obvious and quite sad to be honest. The person giving the lessons understands how it all works, but doesn't quite understand the actual implications of the theories that have been researched and developed.

  • @robynblack6427
    @robynblack6427 10 ปีที่แล้ว +7

    Thank you so much, feel so much more confident about my AD & AS test tomorrow!

  • @agenttuna
    @agenttuna 12 ปีที่แล้ว +4

    how did you know i have an exam on this subject on tuesday

  • @amsgbdg2001
    @amsgbdg2001 10 ปีที่แล้ว +4

    Thank you for doing these videos. I was confused in my class! This has helped

  • @MrRONMIS
    @MrRONMIS 12 ปีที่แล้ว +4

    Theory and policy of Prices - it was the hardest subject on my college. I wish this and similar videos existed several years ago.

  • @andyfilips420
    @andyfilips420 4 ปีที่แล้ว +1

    It’s amazing how this guy is a better professor than the lady who gets paid 60k a semester to teach me 😂

  • @nannybannany
    @nannybannany 12 ปีที่แล้ว +1

    In addition to being able to pause or go back, I think you meant you want him to speak slower, or less quickly. Pausing is helpful though. I had to go back like 9 times in a number of different spots so I could make sure I understood everything he had just said. =)

    • @annieshahzad8970
      @annieshahzad8970 5 ปีที่แล้ว +1

      you should set playback speed on 0.5

  • @salsamamihtx
    @salsamamihtx 7 ปีที่แล้ว +2

    How does increasing interest rates impact household and business spending?

    • @LinhVu-ru4wx
      @LinhVu-ru4wx 7 ปีที่แล้ว +1

      when interest rate goes up, the cost of borrowing goes up -> investment goes down

    • @Nonone36
      @Nonone36 6 ปีที่แล้ว +1

      Jocelyn Munoz .. Increasing interest rates results in decrease in investment . So, people and firms will invest lesser. It will decrease aggregate household income .So, people will buy less and it will affect buisness overall

  • @vinoo89
    @vinoo89 2 ปีที่แล้ว

    Why does a tax cut represent a shift in Aggregate Demand rather than just a shift along the Aggregate Demand curve?

  • @jayp6955
    @jayp6955 6 ปีที่แล้ว

    I feel this entire subject matter is irrelevant and way too specific in the grand scheme of things. Interest rates will not be controlled by humans (the Federal Reserve) forever. Eventually, money will be entirely digital and its supply will be controlled by an algorithm, much like in the case of Bitcoin. I find it sad that economics classes put so much time into understanding rigged systems.

  • @Intania123
    @Intania123 8 ปีที่แล้ว +2

    Thank you very much

  • @cadetri9716
    @cadetri9716 5 ปีที่แล้ว

    Please for the love of God explain why government spending increases aggregate demand

  • @ahmedmagdyfarid
    @ahmedmagdyfarid 8 ปีที่แล้ว +2

    You are the best guys .. Keep it up

  • @CorneliusHDybdahl
    @CorneliusHDybdahl 4 ปีที่แล้ว

    Am I missing something or is all this just saying that increasing the GDP is increasing the GDP?

  • @mmmd8152
    @mmmd8152 4 ปีที่แล้ว

    HOW DOES A RECESSION IN EUROPE AFFECT US REAL GDP AND PRICE LEVEL AND AGGREGATE DEMAND ???????

  • @c63tho
    @c63tho 12 ปีที่แล้ว

    @Doodsome not necessarily; advertising is a micro concept (you can't advertise for all of an economy's products at once) and tax cuts (or fiscal policy, if you're getting into textbook terms) directly affect consumption on a macro level.

  • @IncongruousMind
    @IncongruousMind 12 ปีที่แล้ว

    you're the best. like, the actual best. i tried watching a video by another guy but his handwriting sucked and his voice sucked and i had to switch back to you because, well, you're the best.

  • @patv8028
    @patv8028 7 ปีที่แล้ว

    what will happen if there is more imports than export in the economy? will it shift rightward?

  • @Doodsome
    @Doodsome 12 ปีที่แล้ว

    Advertisement is a better example of how consumption can get increased. Tax cut seems more appropriate for the G variable.

  • @GiovanniMinto
    @GiovanniMinto 6 ปีที่แล้ว

    i don't get it
    the general level of price goes=down gdp goes up ,
    level of price goes down = deflation , right ?
    So deflation might help gdp's growth ?

  • @AllaahuAkbar60
    @AllaahuAkbar60 11 ปีที่แล้ว

    can yu show me the diagram of aggregate demand and aggregate supply when Taxes increase in a closed economy

  • @muhammadjunaid-wi7uk
    @muhammadjunaid-wi7uk 4 ปีที่แล้ว

    Great work!! Keep it up!
    I suggest you to put few ads on your video to serve your purpose as well!!

  • @julioabea7925
    @julioabea7925 3 ปีที่แล้ว

    man explained in 2 videos the whole class

  • @Doodsome
    @Doodsome 12 ปีที่แล้ว

    Yes Ceteris paribus. Ofcourse. This answers my question from ur last vid.
    So let me make clear things up for myself at least. We aren't taking the whole picture of unemployment/GDP thing. We are just looking at different pieces of one big puzzle here. THat's where the necessity for ceteris paribus comes into play.
    If one was to implement these theories into real life, he would have to operate with as many pieces as possible to get a good picture of the whole thing and to be able to estimate

  • @hasansakib3502
    @hasansakib3502 5 ปีที่แล้ว

    BEST

  • @WalikoBotha-lj2mm
    @WalikoBotha-lj2mm 9 หลายเดือนก่อน

    Macro made easy 😢❤

  • @edsonacarapi6932
    @edsonacarapi6932 7 ปีที่แล้ว

    What would need to happen for the slope of the aggregate demand curve to change?

  • @abbasakbar6597
    @abbasakbar6597 8 ปีที่แล้ว

    so why is it that government spending increases often have a worse off effect on gross domestic product as discussed not only by current members of the right, but also guys like Adam Smith in the wealth of nations? is it because the money is put towards ineffective areas?

    • @sws212
      @sws212 8 ปีที่แล้ว

      His explanation doesn't point out that sometimes government spending lowers investment spending (crowding out effect). Increased production Y from government can push interest rates higher (people have more money and want more benefit from saving) and higher interest cost means it's harder for firms to invest and produce.

    • @abbasakbar6597
      @abbasakbar6597 8 ปีที่แล้ว

      interesting, thank you! I feel as if confidence in the dollar internationally has kept rates artificially suppressed for quite some time, hopefully we can get out of the current hole of a recovery built on 8 years of 0% interest rates in a relatively painless matter.

    • @shermanlee2164
      @shermanlee2164 7 ปีที่แล้ว

      And hopefully, Trump is there to help the economy boom + more local businesses

  • @firelordzucchinni5550
    @firelordzucchinni5550 4 ปีที่แล้ว

    Khan God bless your soul man 😇😇😇

  • @tahrin2841
    @tahrin2841 4 หลายเดือนก่อน

    Khan academy ❤️

  • @b33x
    @b33x 12 ปีที่แล้ว

    Keep it up Mr. Khan! (this is compliment should be enough for you to make another video!)

  • @olearymac
    @olearymac 10 หลายเดือนก่อน

    Great video.

  • @Ygidfn
    @Ygidfn 4 ปีที่แล้ว

    More helpful than my teacher

  • @ijazahmad-ve4ew
    @ijazahmad-ve4ew 5 ปีที่แล้ว

    sir can you tell me about

  • @mohamedshahin561
    @mohamedshahin561 4 ปีที่แล้ว

    Anyone watch in 2020

  • @AddictToPhotography
    @AddictToPhotography 11 ปีที่แล้ว

    thanks a lot =) it really help me as i missed the lecture class.

  • @marlensurabaldinov7735
    @marlensurabaldinov7735 5 ปีที่แล้ว

    Thank you for sharing your knowledge!

  • @Ygidfn
    @Ygidfn 4 ปีที่แล้ว

    Thank you so much

  • @piyumithakshila7028
    @piyumithakshila7028 5 ปีที่แล้ว

    Thank you so much

  • @Doodsome
    @Doodsome 12 ปีที่แล้ว

    @c63tho makes sense. Thanks.

  • @djma114
    @djma114 6 ปีที่แล้ว

    better than my textbooks

  • @soniadg4655
    @soniadg4655 11 ปีที่แล้ว

    this is so helpful!! Thank you!!!

  • @fs5747
    @fs5747 6 ปีที่แล้ว

    thnx for the video

  • @shemsylvester2870
    @shemsylvester2870 9 ปีที่แล้ว

    Thank you for the help!

  • @disgorgeengorge
    @disgorgeengorge 12 ปีที่แล้ว

    first.

  • @cmtouhidurrahmanshiam2919
    @cmtouhidurrahmanshiam2919 9 ปีที่แล้ว

    great

  • @javorgovedarski7788
    @javorgovedarski7788 7 ปีที่แล้ว

    Thank you man !

  • @TheSubwoolfer
    @TheSubwoolfer 11 ปีที่แล้ว

    u make macro sound easy. love ur work