I just had my econ final, didn't understand what was going on the whole semester, binge watched your videos and here I am with an A- for the year. Thank you!
Alfred Hitchcock I don’t hate her but she was very strict and had a thick Ugandan accent so it was hard to understand her and if you asked her to repeat herself, show wild get increasingly mad. Why do you ask?
@@aaroncrumbley I just came here because I was taking a Macroeconomics course in edX to enhance my forex trading skills. I was just curious how are you right now, 5 years after and do you still see the relevance of taking Economics in College?
Sir i want just you to know that if i passed both of my micro and marcecon classes then it's all because of you! Because i am taking macro and micro econ with the same profs, and he has bad handwriting and he jumps here and there that makes me lost as hell in class, and he tends to drag things too long which doesn't fit in my attention span. I like your teaching style how it's short and sweet and CLEAR, I can learn much more things in much lesser amount of time here than in class. 4 mins of your video is more than 2 hrs of my econ classes. Now i don't even bother to listen in class anymore since he gets me lost just 5 mins into the class, i don't write down his note too since i can't recognize what he writes on the board, all i do is come back home and watch your videos and within a few mins i'll be good to go. Thanks again! Most of my classmates can't tell what his writing on the board, and most of us will get discouraged, and i told them about your videos, and they told me i saved their asses! LOL.
I know I'm a bit late to the party here, but thank you so much for making these videos man. You've saved the asses of numerous university/college students. It's crazy to think that there are professors making ridiculous amounts of money when they can barely teach anything right -- especially compared to you. Cheers.
Wtf!!! Pardon my French!!! Dude, my head has been burning for this stupid topic!!! Hours days weeks reading about it.... It took you 3 mins!!! 3 mins!!!!!!!! I'm so angry ugh!!!!!! I hate you in all the loving ways!!! You're incredible...!!! Thank you so much
Hi Jacob, I'm having a problem understanding the long-run self-adjustment you explained from 2:00 onwards. Isn't it that in an inflationary gap, as the price level increases that the AS should increase as well, as more producers are willing to supply stuff since there is bigger demand which raises the price level? You said that AS decreases in an inflationary gap, which then raises the price level even higher. On the other hand, it is also logical to me that in a recessionary gap, as the AD decreases, AS should decrease as well as fewer producers are willing to supply stuff when AD and hence the price level is lowered. You said that in such recessionary gap cases, when wages and price level fall, AS increases, but why would AS increase as a response to lower prices? It is illogical to me that way. Also, both scenarios in the way you explained them end up at a different price level compared to the one they started at, so how is that self-adjustment? Your answer would mean a lot, I must be missing something crucial here. Thank you for your work!
Case 1: stock market crash (affect Consumption) A shift in AD to the left causes recession (rising unem, falling prices) -> in the long run, wages will decrease -> cost of production decrease -> AS rises
When SRAS shifts to the left it is the worst case scenario, but what if SRAS shifts to the right because of a decrease in input prices? Does the government leave it alone because it is a good thing? how will it eventually adjust itself
Hello Mr. Clifford, Sir in the AS and AD curve the x axis is Real GDP , but I have a doubt that - When AD increses - the price increase - and thus GDP increase. But that GDP should be nominal as AD increase the price level and this increase in price level is reflected in the GDP. So did this GDP should be nominal or real ?
Okay I just figured out that the AS and LRAS are separate curves... I was under the impression that the AS _becomes_ the LRAS. Small conceptual shifts.
wow how to make somethign so complicated lol economics. Its easy concept but these instructors and colleges make it too hard to understand the concept.
2:28 Wasn't the FDR's administration doing everything to prevent this self-correction? They tried to prevent wages from going down by introducing a federal minimum wage, created cartels by working with big businesses and engaging in price fixing at higher levers, limited agricultural supply by paying farmers not to produce, etc.
When price level increases, workers can demand higher wages, but there is no guarantee that they can get it, meaning that if they don’t, AS stays where it is, instead of moving towards AS1. The result is that a temporary increase in output level becomes permanent, meaning that LRAS moves to the right and we suddenly realize that we can do so much more than we think we could. Also, if increase in AD is due to increased investment which leads to innovation that yields higher level of output, then we would also see right shift of LRAS rather than the left shift of AS. The model seems to suggest that either working habit is a constant or technology is a constant, or both... but they are, in the real world, constantly evolving...
Hi Mr. Clifford, I'm confused about why the recessionary gap is due to the leftward shift of AD instead of AS? Does the curve that shifts have to be AD? In other words, can stagflation be a scenario when the economy is at recession?
Hi Jacob, love your videos! Why is the independent variable (price level) is placed and shown at the Y-axis, and the dependent variable is placed and shown at the X-axis. Should it not be viceversa.Thanks.
Hi Jacob, love your videos! Why is the independent variable (price level) is placed and shown at the Y-axis, and the dependent variable is placed and shown at the X-axis. Should it not be viceversa.Thanks.
As a non-native always have to change the speed at which the video is played to 0.75 cause you´re speaking so incredibly fast. But I like the way you explain things. Thanks for all these helpful videos!!
Thank you man for all your support because I almost decided to kidnap my instructor's 8 year old son to pass the course but your videos helped me a lot. Now I decided to enter to the exam tomorrow.
My econ teacher is very good but I enjoy going over these videos to help get a better understanding of the topics that I study for Macro (she only teaches micro.) Thank you.
+Amelia Stehrenberger Let's say that the SRAS curve shifts leftward due to an increase in oil prices. This would increase production costs for the economy as a whole, thus it would shift SRAS to the left. In this case, there is no 'self-correcting' mechanism. SRAS will shift back to its original position once oil prices go back to normal.
You know Jacob I must say I am an avid watcher and big fan of your videos the day before my economic exams, but this was a disappointment. I watched this video AT LEAST 4 times, and I still messed up on the recessionary and inflationary gap. Sure it may have been my mistake, but the difference NEEDS to be made clear. Anyways, thank you for the hard work Much love
bruh!!! Glad you make videos like this. Everything click when you said " the trick is to remember when there is recession wages will eventually fall and when there is inflation wages will eventually go up!!! my final is next week and this chapter was putting me on my knees LOL
You say there are only four possibilities. Wrong. You leave out the possibility of the president enacting price controls as Nixon did in the 70s. What happens is that demand stays the same but supply decreases and the market does NOT adjust toward the equilibrium point. Demand exceeds supply, and you get lines at the gas station, the supermarket, etc. Here's a rule of thumb: if you've got lines then prices controls are the problem. Let the prices rise and the line disappears as supply increases and demand decreases.
This video assumes no government intervention. The thing with economic formulas is that they are not identical representations of reality, so on paper, you have to remove variables so that you can see what variables, when shifted, make changes. But you are correct that if you artificially lock prices, then the whole formula fall apart. Also, I agree that the government should stay our of our business, figuratively and literally. The government is why my college tuition is so dang artificially high.
