Thank you so much for these videos, I excel with microeconomics (partly thanks to my principles class using your book!) but its been a while since I took any macro and I will be taking intermediate macro next semester, its great to have a easily accessible and free review :D.
Are the prices at 3:10 increasing just because the dollar deprechiates against other currencies? If yes how would that situation behave if we would have one world government with one currency?
If there is generalised spare capacity in an economy, increases in aggregate demand will lead to real growth which is contrary to this particular video!
Does this apply to property market where cheap money (increasing money supply) due to tax concessions, low interest rate etc leading to inflating property prices and growth in short run but then in long run reducing the growth rate and leaving everyone with inflated property prices? I.e. Property bubble?
Does downward nominal wage rigidity increase unemployment? I have an exam on Monday on Macroeconomics and one of the questions will be on DNWR and how it affects the outcomes of an expansionary fiscal policy. PLEASE HELP
..Eh?! They start by assuming sticky prices and wages along with increased employment/output. Increased money supply is NOT inflationary under those conditions. Then from ~2:55 they throw all that out and make the opposite assumptions. WTF? Also, it's flat false to say workers will be less willing to work overtime if they discover that their real wage has less purchasing power. More like the opposite. Since they must house and feed families, they aren't simply making a trade-off with leisure.
George Mason University in Fairfax, VA. There's a MA fellowship where you can both study econ and work at MRU! Details here: learn.mruniversity.com/join-the-team/ -Roman
Rather than the Inflation rate, why not use price------price being the key measure in most graphs (whilst Inflation is rather narrow is a measure of price increase/decrease of a limited basket of goods)
governments with a fiat currency system under their control can and should print (or create with a few keystrokes in today's digital age) as much money as they need to spend because they cannot go broke or be insolvent unless a political decision to do so is taken.
6:23: "Change in aggregate demand doesn't change the real factors...". Of course, it can change them if part of the increase in demand is investment demand. But even if it doesn't, this does not imply that the real growth effects of increased aggregate demand will vanish in the long run: an increase in aggregate demand may change the rate of employment of the available factors permanently, so leading to a permanent increase in GDP. These professors are lying to us; they know they are making a concealed assumption, namely, that we start from full employment, from the potential output onwards; the mechanism they put forward does not work if we start from lesser than full employment output, hence they are carefully concealing the fact that stimulating aggregate demand can take us from unemployment to full employment and the effect need not vanish.
