The answers to the practice multiple-choice questions are below. Just click on "Read more". 1. A 2. D 3. D Need more practice? Get the Ultimate Review Packet. It's FREE to start. Step 1: Go to: www.ultimatereviewpacket.com Step 2: Create a free account Step 3: Enroll in the free version of the Macroeconomics packet
Hey mr Clifford I just wanted to thank you for all the work you did helping us prep for the AP test last year. You absolutely saved my score and I even ended up watching one of your vids in the middle of my test to help me. You’re the best.
@@devinbaum3131 First of all, the price of foreign goods wouldn't decrease if the price level increased. It would most likely increase because now instead of natives buying native goods, they would buy foreign goods since they are cheaper, then the price of foreign goods would increase because the demand of foreign goods increased. Second of all, even if the price of foreign goods decreased, that means that there would be more imports. Real GDP would decrease, and aggregate demand would decrease. (C + I + G + (X - M)) I may not be 100% correct.
AD: 1. AD increase, shift right - Investment 2. AD Decrease, shift left - Expectations 3. AD Increase, shift right - Consumer spending 4. AD Decrease, shift left - Net Export 5. AD Increase, shift right - investment 6. AD Decrease, shift left - Consumer spending
Dang... you released this video just as i'm learning aggregate demand in school this week. Talk about perfect timing! By the way, i'm a university student and i love watching your videos as quick recaps of past topics as a refresher. Awesome work Jacob!
During my 2nd semester in college, when I took macro, for the first dew days I didn’t have much helpful resources provided by my professor until I, myself, stumbled upon this channel that accurately explains macro topics in a few mins. So I gotta say kudos to you, Jacob! 😄
But be happy that the things that bother you are mindless things like milk jugs being out of the fridge. And might I add, dont cry over spilled milk. :)
at 2:05 "When price level goes up people buys less but also save less" I don't understand why they'd save less. If prices are high then they won't consume as much and so they will save more..
God bless you for all the great works. I have become a better Economics teacher through your videos and still following to become greater. Thank you so much.
Hey Jacob! Im currently enrolled in an online accelerated macro class with almost zero professor/student interaction and your videos have really been a life saver. More so this week as we're learning AS-AD, Multipliers, Fiscal Policy, Deficits and Debt. Thank you for loving Econ!
Hello Jacob. Hope you're well! Your videos in high school (9 years ago for me) made me fall in love with Econ. Just finish my undergrad in business also used your videos throughout my time at uni haha... thanks so much! ☺️
The "answers" only caused more confusion, is the demand and supply curve a worldwide secret ? Because for weeks I have been looking for a straightforward answer and it's no where.. I only find more riddles to solve. I need "black & White" answers from somewhere. Accounting was not meant for my brain, I must be a masochist :D What shifts the curve to the left and what shifts it to the right. Straight up ?
2:14 doesn’t an increase in price level cause a consumer to save more???? I don’t understand how lower interest causes more saving, i thought it was opposite.
I'm confused at 2:07, in interest rate effect, why do "people buy less, they also save less" ? Can anyone explain this part for me. Thank you in advanceeee!! I guess people buy less in the goods and services market so they would send money to the banks more, don't they ??
I think its more of a separate statements like "price level goes up people buy less(since more expensive). price level goes up people save less." (since things cost more and ppl have less purchasing power to save money.) idk if that makes sense?
I don't quite understand how when the dollar appreciates aggregate demand would fall, because consumption would increase since consumers can purchase more products and services however I do understand that exports will fall. Can someone please explain this to me?
If the US dollar appreciates, Americans will buy MORE foreign goods and foreigners will buy LESS American goods. This means US imports will increase and US exports will decrease. This means US GDP and aggregate demand will decrease. Does that help?
Just completed modern states course on this unit and it seems to directly contradict the explanation of the Interest Rate Effect. To quote modern states directly: At a lower price level, households reduce money holdings by lending some out leading to a fall in interest rates. As interest rates fall, firms are encouraged to borrow and invest. They may have made a mistake where households should be banks (?) Either way, Mr Clifford is saying that higher price levels are causing people to spend less AND save less leading to higher interest rates While Modern States is saying lower price levels cause people to save less leading to lower interest rates. Someone help me here
Fascinating video, but I kept getting sidetracked by the milk in the back. I was trying to figure out if that was really milk or water Lol. Sorry I couldn't help it 😂
After listening to Jerome Powell I needed to understand aggregate demand since is what the FED can affect with monetary policies Thanks for your video you are very clear even for somebody like me, a foreign that I didn’t study economy I was able to understand and answer all the questions right
This is helping me alot in ap econ but if you could organize all your videos into folders like by putting all the videos relating to macro into the macro folder you have that would help me and probably alot of other people a significant amount, thank you!
Thank you so much for all of your Econ videos! They have helped me so much throughout my Economics units. It's funny because every time you said "It's alright if you've answered the question with this answer instead of that answer, it's okay"... Answer 3 I put Government Spending, changed it to Consumer Spending, then added Goverment spending back in afterwards!
According to the videos about "demand and supply" there are shifters that make the curve to move, and "change in price " just makes the point move along the same curve. But in this video first he said 3 things that make "quantity demanded" to change. But at the end almost the same things (eg. 1st case exchange rate, 2nd case dollar appreciates. For me they are the same. ) became "shifters". I did not see big difference. I would be happy if someone spend time to clarify this.
wow, this video helped me in words I cannot explain... i was sitting and looking at my lecture notes and was completely lost, this video made me understand so much in so little time. thank you so much.
I really have to thank you for your vidoes! Out of all the videos I tried watching for economics I really couldn't focus on them. Yours have really impacted my learning. Thank you! and rock on AC/DC!!!!
You are the best 😊 Thank you for your videos sir...it has a huge impact on us...I wish I understand Economics atleast half of what you understood 😅 You will be my favourite teacher always
But why wouldn't a decrease in price levels not decrease the real gdp! GDP is a function of price right? If price goes down and you save more, doesn't that mean you spend less, and that itself is reducing the real gdp? I am a bit confused here...
If the price level goes down, there will be MORE consumer spending, hence the real GDP will INCREASE. The "saving more" part is relative to before the price levels went down.
What I don't get on question 3 is that if consumption decreases then GDP also decreases then how is it that when consumption increases GDP does not increase cause I answered A but D is the answer
Read the question properly, it clearly says, "With an increase in real interest rates". In this situation the consumption WILL decrease leading to a decrease in Real GDP as well. Hence, the answer is D. But in general, consumption is directly proportional to real GDP so as consumption increases, real GDP will increase.
The answers to the practice multiple-choice questions are below. Just click on "Read more".
1. A
2. D
3. D
Need more practice? Get the Ultimate Review Packet. It's FREE to start.
Step 1: Go to: www.ultimatereviewpacket.com
Step 2: Create a free account
Step 3: Enroll in the free version of the Macroeconomics packet
Hey mr Clifford I just wanted to thank you for all the work you did helping us prep for the AP test last year. You absolutely saved my score and I even ended up watching one of your vids in the middle of my test to help me. You’re the best.
@@mikespinelli299 i love the appreciation but prob shouldn't say that last part online
Why isn’t the answer to 1 B?
I can understand that for 1, A is the correct answer but why isn't B a plausible choice?
@@devinbaum3131 First of all, the price of foreign goods wouldn't decrease if the price level increased. It would most likely increase because now instead of natives buying native goods, they would buy foreign goods since they are cheaper, then the price of foreign goods would increase because the demand of foreign goods increased. Second of all, even if the price of foreign goods decreased, that means that there would be more imports. Real GDP would decrease, and aggregate demand would decrease. (C + I + G + (X - M)) I may not be 100% correct.
It's crazy how, even if Jacob is a good man and explains everything with such a positive energy, I can't figure it out 😂.
😂😂😂😂😂
True😂😂😂😂
Same here 🤯😭
@@funchum0008 me 2，it‘s so hard
😂😂😂😂 omg
AD:
1. AD increase, shift right - Investment
2. AD Decrease, shift left - Expectations
3. AD Increase, shift right - Consumer spending
4. AD Decrease, shift left - Net Export
5. AD Increase, shift right - investment
6. AD Decrease, shift left - Consumer spending
Yes! Good Job!!
Thanks
You put `AD Increase, shift right - investment ` on 1 and 5. was that on purpose? i am now studying for my exams. thank you
Dang... you released this video just as i'm learning aggregate demand in school this week. Talk about perfect timing! By the way, i'm a university student and i love watching your videos as quick recaps of past topics as a refresher. Awesome work Jacob!
Same with me! I’m convinced he’s a spy because this is the third time that has happened
Same here!! 🙋♀️
Thank you Mr.Clifford! You are the hero I didn't think I need, BUT I DEFINITELY NEED to ace my IB econ tests :D
During my 2nd semester in college, when I took macro, for the first dew days I didn’t have much helpful resources provided by my professor until I, myself, stumbled upon this channel that accurately explains macro topics in a few mins.
So I gotta say kudos to you, Jacob! 😄
The milk jug outside the fridge bothers me so much
It's clearly glue being used as a prop
It’s from a previous video. Kind of an insider
But be happy that the things that bother you are mindless things like milk jugs being out of the fridge. And might I add, dont cry over spilled milk. :)
at 2:05 "When price level goes up people buys less but also save less" I don't understand why they'd save less. If prices are high then they won't consume as much and so they will save more..
God bless you for all the great works.
I have become a better Economics teacher through your videos and still following to become greater.
Thank you so much.
Hey Jacob! Im currently enrolled in an online accelerated macro class with almost zero professor/student interaction and your videos have really been a life saver. More so this week as we're learning AS-AD, Multipliers, Fiscal Policy, Deficits and Debt. Thank you for loving Econ!
Your videos have helped me in micro. Macro is kicking my butt right now, so thank you for being here
Why is there a half empty jug of milk on the shelf?
What’s the name of the soundtrack that you’ve used in your intro?
spring in my step
Your videos are awesome but I have an earnest request please you speak toooo fast very difficult to catch
Sorry. I just get so excited about this stuff.
Its ok Sir no worries I really appreciate your efforts that helps us alot keep it up
Smart Guy you can put the video on .75 speed lol
I just did this topic on Monday.. Thank youu
You've got to put that milk in the fridge.
Can someone explain why, when price level goes up, that people buy less AND save less? he says it at 2:10
I'm so thankful for how easy and fun you've made Economics ... Thank you Jacob Clifford for being the teacher I always needed.
Hello Jacob. Hope you're well! Your videos in high school (9 years ago for me) made me fall in love with Econ. Just finish my undergrad in business also used your videos throughout my time at uni haha... thanks so much! ☺️
please talk little slow. some of your targeted audiences are slower than you. thank you
Is the reason why AD is downwards slopping also the factors that causes shifts along the AD?
You are awesome!!! Thank you Mr. Clifford!! You just earned yourself a new subscriber ❤️
NOW THIS IS A BANGER 🤣🤩
shoutout to jacob for actually being my macro teacher bc my teacher just gives us all of his stuff instead of actually teaching
All I wanna say is thank god for you, i have the worst teacher ever, and i suffer in this class until I watch your videos . Love you mate
The "answers" only caused more confusion, is the demand and supply curve a worldwide secret ? Because for weeks I have been looking for a straightforward answer and it's no where.. I only find more riddles to solve. I need "black & White" answers from somewhere. Accounting was not meant for my brain, I must be a masochist :D What shifts the curve to the left and what shifts it to the right. Straight up ?
im learning more here than in my classes lol
thank you for this video, taking a class online right now and hearing it helps way more than just reading
Too fast for such a complicated topic. You lost me on 3rd minute. 👎🏽👎🏽👎🏽
You're quite possibly, the best teacher I've ever had. And we've never even met!
2:14 doesn’t an increase in price level cause a consumer to save more???? I don’t understand how lower interest causes more saving, i thought it was opposite.
I'm confused at 2:07, in interest rate effect, why do "people buy less, they also save less" ? Can anyone explain this part for me. Thank you in advanceeee!!
I guess people buy less in the goods and services market so they would send money to the banks more, don't they ??
I think its more of a separate statements like "price level goes up people buy less(since more expensive). price level goes up people save less." (since things cost more and ppl have less purchasing power to save money.) idk if that makes sense?
Isn't a little inflation good for the economy? Why would a country wanna have aggregate demand to shift left ?
I don't quite understand how when the dollar appreciates aggregate demand would fall, because consumption would increase since consumers can purchase more products and services however I do understand that exports will fall. Can someone please explain this to me?
If the US dollar appreciates, Americans will buy MORE foreign goods and foreigners will buy LESS American goods. This means US imports will increase and US exports will decrease. This means US GDP and aggregate demand will decrease. Does that help?
@@JacobAClifford yes, this helps. Thank you!
16 “I am sending you out like sheep among wolves. Therefore be as shrewd as snakes and as innocent as doves. (Matthew 10:16 NIV)
You help me through a hard time man i love your videos! i've today my economic exam and your videos explained it in a easy way!
Please teach us the ABC analysis(inventory management)
You are the best man. Never seen someone so good at teaching.
do transfer payments consider themselves as subsidies
Just completed modern states course on this unit and it seems to directly contradict the explanation of the Interest Rate Effect. To quote modern states directly: At a lower price level, households reduce money holdings by lending some out leading to a fall in interest rates. As interest rates fall, firms are encouraged to borrow and invest.
They may have made a mistake where households should be banks (?)
Either way, Mr Clifford is saying that higher price levels are causing people to spend less AND save less leading to higher interest rates
While Modern States is saying lower price levels cause people to save less leading to lower interest rates.
Someone help me here
Why is the first question A? I thought it was B.
Thanks for the Brian Regan shout-out in the initial PPF curve!! Y'all are both great!
Fascinating video, but I kept getting sidetracked by the milk in the back. I was trying to figure out if that was really milk or water Lol. Sorry I couldn't help it 😂
Where is last question answers i didn't find that.
After listening to Jerome Powell I needed to understand aggregate demand since is what the FED can affect with monetary policies
Thanks for your video you are very clear even for somebody like me, a foreign that I didn’t study economy I was able to understand and answer all the questions right
I've seen you in CrashCourse
I love you Mr.Jacob❤❤❤❤❤❤💋💋💋💋💋💋👄👄👄👄👄👄
I love u, chichi
@@spencer7594 ❤❤❤😅😅😅
you are amazing teacher :)
OMG I could cry! I could NOT understand that graph for the life of me! THANK YOU
bruh thank you you just saved me T-T
Thank you!! This video really helped!! :)
sce·nar·i·o (/səˈnerēō/)
1. Real value of assets
2. Income taxes
This is helping me alot in ap econ but if you could organize all your videos into folders like by putting all the videos relating to macro into the macro folder you have that would help me and probably alot of other people a significant amount, thank you!
I was thinking that stock is a financial investment so don't count?😢GDP and AD are two diff concepts?
Mr Clifford, how can I get the review packet?
The link is in the description.
Thank you so much for the easy to digest informative video. I also couldn't help but wonder how long that gallon of milk has been sitting there..
Does anyone know if a decrease in production cost will increase aggregate demand? Since the investment expenditure can increase
This channel needs more subscribers and more views because right now its not reflecting the quality of the content.
Honestly, why did I even watch my 1 hour long lectures if I can learn in 7 minutes 😭
jacob clifford i love you you helped me get a 5 on micro and hopefully macro as well!!
😮
Thank you so much for all of your Econ videos!
They have helped me so much throughout my Economics units.
It's funny because every time you said "It's alright if you've answered the question with this answer instead of that answer, it's okay"... Answer 3 I put Government Spending, changed it to Consumer Spending, then added Goverment spending back in afterwards!
Thank u soooooo much for making it fun and easy to understand 👍🏻👍🏻👍🏻👍🏻
According to the videos about "demand and supply" there are shifters that make the curve to move, and "change in price " just makes the point move along the same curve. But in this video first he said 3 things that make "quantity demanded" to change. But at the end almost the same things (eg. 1st case exchange rate, 2nd case dollar appreciates. For me they are the same. ) became "shifters". I did not see big difference. I would be happy if someone spend time to clarify this.
You are really good, all I ask is next video can you solve some economic questions
Hi! May I ask why people save less when the interest rate is high? Thank you!
But doesn't stock market not count in GDP, as nothing is created?
hey guy i really don't want to say bad words but this guys is a fucking legend
Truly quality video, thank you so much!
wow, this video helped me in words I cannot explain... i was sitting and looking at my lecture notes and was completely lost, this video made me understand so much in so little time. thank you so much.
U became older 🥺
this man teaches better then my performer i didn't understand it at all until he taught me.
Thank you jacob .your videos have helped me alot , im on my way to be an economics guru. We really appreciate your videos here in Zimbabwe..
No rubics vibe turtorial😢
Trust me pal, you’re the best 👏🏼👏🏼👏🏼👏🏼 and I aced the shifters 😜😜
Came to learn about LRAS and struck gold! Really great stuff!
The answer is (A)
Great video, I just do not fully agree with the shift of the stock market question.
Absolutely thanks a lot for this I am very gratitude
God bless you (thank you!!)
Laughed loud at 3 am studying when I saw that cat goes " wow"
I really have to thank you for your vidoes! Out of all the videos I tried watching for economics I really couldn't focus on them. Yours have really impacted my learning. Thank you! and rock on AC/DC!!!!
3:43 The "unexpected boom" in the stock market is still pretty vague - it can be either a positive or negative event.
the music is kinda distracting ....no offence
Sorry. There is only music for the first minute
You are the best 😊 Thank you for your videos sir...it has a huge impact on us...I wish I understand Economics atleast half of what you understood 😅 You will be my favourite teacher always
Mr. Clifford is still helping me survive these Econ classes! Thank you Sir!
Thanks Sur so much. You made my Economics life muuuuch easier
But why wouldn't a decrease in price levels not decrease the real gdp! GDP is a function of price right? If price goes down and you save more, doesn't that mean you spend less, and that itself is reducing the real gdp? I am a bit confused here...
If the price level goes down, there will be MORE consumer spending, hence the real GDP will INCREASE.
The "saving more" part is relative to before the price levels went down.
Until next time...!!!🤣🤣🤣
Helps .god bless the speed adjustment feature
top quality content, insane like and dislike ration
you are so fast when speaking sir😟
jacob thank you for these great videos man !!
tag yourself I'm the jug of milk on the shelf
That wow part 🤣
why is there a bottle of milk behind him?
YOU'RE LITERALLY THE ONLY PERSON I UNDERSTAND ECONOMICS FROM, THANK YOU SO MUCHH
What I don't get on question 3 is that if consumption decreases then GDP also decreases then how is it that when consumption increases GDP does not increase cause I answered A but D is the answer
Read the question properly, it clearly says, "With an increase in real interest rates".
In this situation the consumption WILL decrease leading to a decrease in Real GDP as well. Hence, the answer is D.
But in general, consumption is directly proportional to real GDP so as consumption increases, real GDP will increase.
Love the analogy of the Rubik’s cube, but you solve the puzzle in three layers, not by the faces. Love it.