Knowledge is one thing and ability to teach at this excellence is an entirely different skill. You got it all and some! I learnt these theories during just the length of your tutorials; wouldn't be the case if I sat in a class for hours with someone who had no idea of teaching. People like you, are global treasures. Hope you know that. thanks Dal tanks you tube!
With this new OCR specification with a terrible textbook by Peter Smith, you've been extremely helpful to my gaining of knowledge with regard to economics
watching this 2 days before 2024 paper 2 (AQA) hopefully itll come up. (Your face is burnt into my monitor at this point but i cant stay mad at you econplusdaddy)
how do you show that inflation also rises with the new phillips curve due to stagflation? As the line coming from PL2 should be linear? or do you just draw the line with a slight bend upwards? thanks your videos are very useful
Fantastic content here : could you even shift SRAS to the left due to the Ebergy crisis or due to lefts sag COVID . ???? But put the same effects on the Phillips curve ?
Thank you so much for such a helpful video! However does the SRPC shifting to SRPC 3 counter the argument that any reduction in unemployment below the NRU level would be purely inflationary? Or does that only apply when AD is used to do so and because this is the short term phillips curve? Thanks again!
William Mullan You're right, classical economists say that any demand side policies (AD influencing) to reduce unemployment would be purely inflationary. On the supply side the argument changes
Hello, It seems to me that when the AD decreases, the average price level decreases so we face deflation and not disinflation as your movement down the Phillips curve suggests. Am I wrong?
Great video! I have one question though- why would a supply side shock increase unemployment? Is it simply to allow a firm to maintain a profit, so number of employees must decrease in order to reduce ATC? Thank you in advance
Because real gdp decreases labour is a derived demand, derived from the goods and services in the economy Meaning when real gdp falls because of the supply side shock so unemployment (ik you asked 6 years ago)
Hi dal, can you help me understand explicitly why the SRPC shifts? I understand the reduced unemployment results in a higher inflation rate, but what actually happens that causes the shift to the right (eg if lras shifts to the left)? Is it something to do with the firms laying people off due to higher wage demands?
This comment would be of no use now but from what i understood, there wouldnt be a shift in LRAS as this is occuring in the short run. if u meant that SRAS shifts to the left it relates to the idea that it raises a firm's costs of production so they would lay off workers in the process causing SRPC to shift to the right.
Hi sir: could you please discuss those topics e.g how do you close inflation Gap and deflationary gap using fiscal and Monetary policy. and what causes these gaps, how to close these gaps and what the impact of those gaps on economy. thank you sir
I know u may not answer my Q. but if anyone else could help me, is there any proof for such shifts in the SRPC. From the explanations, it just sound as though monetarists forcefully shifts the curve to represent stagflation LOL. If possible, a mathematical explanation would be helpful :D
Sorry but I am a little bit confused. If you shift AD to the left, that means the price level has fallen. But according to the Philips curve, that'd give you a movement along the curve, and in this case, you said it may drop to a 1% inflation rate. Does that not contradict the fall in the price level, since inflation means an increase in the price level?
What is the evaluation . How can the gov try I limit the Trade off that exists ???? And not only this what is the Ebaluation what idea this depend on ??
I think an evaluation point is that firms have become significantly technologically inclined and hence more capital intensive. As a result, you could argue that changes in the unemployment level will not have a large effect on wage growth and the inflation rate.
1:57 "When unemployment is low, workers are very scarce" Can someone explain this to me? I thought of it as the opposite wherein if there are lots of workers wouldn't that mean jobs are scarce? Not workers?
