Test in two days I’m definitely ready but it never hurts to be sure. This is also one of the best educational videos I’ve ever seen always to the point and not time wasted.
Thank you, I'm taking the test tomorrow. I took AP Macro and AP Gov in one class, and we learned AP Macro the first semester, so I barely remember anything despite getting a high A.
I can't explain the gratitude I have for you. You helped me get a 5 on my Microeconomics exam 2 years ago and here I am again watching one of your great videos but for Macro this time. You're a one of a kind teacher, Thank you.
hey Mr. Reed! i took your ep econ class senior year online during covid and i had you for history the year prior. now i'm an econ major!! 😊 i'm watching this video and a few others of yours and jacob clifford's to cram for finals. i frequently use your website/videos and recommend them to my classmates all the time. thanks for being a great teacher :) & i hope all is well!
Hi Whitney! So awesome you became an Econ Major! I'm glad my CoVid teaching didn't ruin econ for you (Ugh that was terrible!) 😅. I am so glad you found my site and videos helpful. Good luck on finals, and your future studies. Also, enjoy your summer!
Hi, Mr Reed. I have been studying for this exam. Even though economics was super difficult for me, I always appreciated how you were one of the best, most caring teachers I ever had. It was fun talking about dimensional analysis or physics in your class alongside engaging with my groups in economics, and you have an awesome RU-vid channel and website. Doing the total review booklet at ball was a great idea. I will try my best at the AP exam today, and I hope to make you proud!
Savings is M1 today, though many resources still say it's M2. You can read about the change here: fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/
Thank you my good sir, I have been studying your information intensively for my exam on Str8erline! I will let you know how I do, it is a final exam = final grade test! I have faith that your hard work and effort in these videos will pay off. I will post tomorrow to let you know how I did. Thank you for all that you have done.
you speedrun everything my teacher taught in a semester, and you did a lot more better than my teacher explaining stuff lmaoo test was super easy after watching this video, i know exactly everything. You are such a top g legend
ap macro exam in a little over 24 hours... i've been watching your videos ever since the start of the school year and it's helped me so much! hoping i get a 4 or above
This video was seriously really useful. I'm definitely gonna watch a couple of times to see if i missed anything i'm supposed to know and to just get the info into my head. Watching this as 2x speed rn lol. Thanks a lot! I really appreciate your help
@@ReviewEcon I have a question. The lower end of the reserve market graph is the interest on reserves right. The policy rate should be between the discount rate and interest on reserves rate right?
The IOR moves the lower end of the demand for reserves (not the entire graph). The policy rate is found at the intersection of the supply and demand for reserves. When there are ample reserves. The supply curve will intersect the demand curve on the lower end of the demand for reserves, so the policy rate will be equal to that lower plat portion of the demand for reserves. When there are limited or scarce reserves, the supply of reserves will intersect the demand curve in the downward sloping portion of the demand curve. I hope that helps!
An increase in transfer payments will shift AD right, but an increase in actually AD decreases transfer payments (because fewer people qualify for unemployment , etc. when rGDP increases). Flipping cause and effect is easy to do in Macro and it can cost you points, so be careful! Good luck!
could u pls explain this question to me ? (this is mcq #58 from the 2014 macro exam) If wages and prices are perfectly flexible and inflation is correctly anticipated, then an expansionary monetary policy will affect the real output and price level in which of the following ways? The correct answer is Real Output has no change and Price Level increases.
They are just completely different models of the monetary system. Generally we use money market limited reserves and the reserves market for ample reserves systems. Good luck!
Thank you so much for this video? For ample reserves, if there was a question regarding whether increase the discount rate or the IOR when there's an inflationary gap, what would we choose?
IOR... Discount rate is one of the administered rates, but changing it does not change the policy rate. Only interest on reserves changes the policy rate (when there is an ample reserves system).
When somebody withdraws money from their demand deposit account, both excess reserves and required reserves decrease. Total reserves decreased by the full amount of the withdrawal. Required reserves decrease by the percentage of the withdrawal set by the central bank. Excess reserves decrease by the amount of the withdrawal that is left after subtracting required reserves. I hope that helps!
Can't be sure, but I would be surprised. This is the first year with ample reserves on the exam, and historically the college board has started small and worked from there. As a result, I expect It will be on the exam, but I'd be surprised if it was a large portion.
It will depend on what the question asks. If they ask about IOR shift only the bottom (Up or down). If they ask about the discount rate, only shift the top (doesn't change the PR). If they ask about administered rates, shift both.
Hey I have a question, is the 2023 AP Macro exam is there going to be no Keynesian AD/AS model or any references to it? My teacher went over that stuff in class and Im confused as to why it is not on here. Thanks in advance!
Keynesian theory is not covered by name and it is integrated into the mainstream AS/AD model, though there have been a couple MC questions about a horizontal AS (Keynesian range). Essentially SRAS and policy action to closed short run output gaps is Keynesian, while LRAS and long run self correction is classical economics. I hope that helps! Good luck on your exams!
