Chapter 33: Aggregate Demand and Aggregate Supply

Key facts about economic fluctuations 1:17
A first picture of the model 7:36
How are the aggregate demand and supply curves different from regular demand and supply curves? 9:39
Why does AD slope downward? 13:34
The wealth effect 14:27
The interest rate effect 15:42
The net export effect 16:48
What causes the AD curve to shift? 18:45
Shifts from changes in consumption 19:45
Shifts from changes in investment 21:23
Shifts from taxes 22:19
Shifts from changes in the money supply 23:02
Shifts from changes in government spending 23:28
Shifts from changes in net exports 24:07
The long-run aggregate supply curve 25:35
Why is it vertical? 26:34
What causes LRAS to shift? 29:04
Using the model to explain long-run growth and inflation 32:10
The short-run aggregate supply curve 35:01
Sticky wage theory 36:40
Sticky price theory 38:43
misperceptions theory 40:05
Things that shift SRAS 47:03
Expected price level vs. actual price level 49:27
Using the AD AS model 54:40
Long-run equilibrium 56:15
A decrease in aggregate demand 59.55
Historical examples of decreases in AD 1:15:45
A second example: an increase in AD 1:22:12
A shift in aggregate supply 1:26:53
Stagflation 1:30:07
Analyzing the pandemic with the AD AS model 1:37:35

Пікірлер: 85

  • @nikhilfci
    @nikhilfci Жыл бұрын

    This 1.75 hour will do no harm for your quest to learn how economy works in long and short run. Thank you sir. GOLD.

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    You are very welcome!

  • @anbudamodaran4162
    @anbudamodaran41622 жыл бұрын

    This deserves way more views. Such a great lecture 👏

  • @emiliadybka5154
    @emiliadybka51542 жыл бұрын

    Absolutely fantastic! Speechless to how amazing these presentations are, perfectly clear and easily understood. Honestly speaking, you are a life saver Dr. Azevedo! Please keep doing what you do. Thanks from NZ!

  • @pinglu1510
    @pinglu1510 Жыл бұрын

    Dr. Azevedo, I can not give enough likes to your lectures! All the best, Ping

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Thank you!

  • @nurulfajri-mm4lo
    @nurulfajri-mm4lo5 ай бұрын

    I just want to say, Thankyou for existing in this word!! I was the person who really hate about math and economic stuff. It's too hard to understand from the slide that my lecture given. Even from the book, but after watch your videos, I gettt moree and moreee better understanding. You deserve to get more than this. You really helping us !!!

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you for the kind words! I'm glad you've found the videos helpful.

  • @EstherMwamba-cu6fw
    @EstherMwamba-cu6fw15 күн бұрын

    I wish I came across your videos earlier Thank you so much, God bless you. Next week I'm writing my exams and I feel like I've learnt a lot more from your lectures thank you so very much 🙏🙏💖

  • @DanielleDeFreeze
    @DanielleDeFreeze2 жыл бұрын

    This man writing backwards deserves some kind of genius award lol.. I do that on foggy windows and stuff that’s how I noticed it but he’s on another level 😬😂

  • @radhikabakshi3782

    @radhikabakshi3782

    2 жыл бұрын

    Sir is writing forwards the video is flipped

  • @DanielleDeFreeze

    @DanielleDeFreeze

    2 жыл бұрын

    @@radhikabakshi3782 oh ok lol

  • @rifqahkhairunnisa1431
    @rifqahkhairunnisa1431Ай бұрын

    hello, sir. i am an economics student from Indonesia, currently working hard studying and preparing for my thesis. finally, i found your channel, and all I can say is a massive thank you, sir. you are the greatest lecturer because when you explain something, it's different, you make it so much easier. i always remember this : when you don't know something, but someone explains it to you in an 'easier way', it's because the person is truly a smart thinker. and you remind me so much of those words. thank you and may you always maintain the enthusiasm for your work, sir.

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you for the kind words! I'm glad my videos have been helpful. Good luck with your thesis.

  • @DatGirlAlicia
    @DatGirlAlicia2 жыл бұрын

    Thank you so much for this video! You’re a GREAT teacher. Thank you so much for explaining what each things is in the real world. I was struggling understanding Macroeconomic until I came across this video. Thank You 🙏🏾

  • @marianabello4671
    @marianabello4671 Жыл бұрын

    Thank you!! This lecture is so easy to understand! I was struggling with the reading of the chapter until I found this video. Thanks from CL!

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    You're welcome.....glad to be able to help!

  • @KawalyaDancanJames
    @KawalyaDancanJames10 ай бұрын

    Dr. of Economics u deserve more than what you give me, your presentations are working out here, thanks dear

  • @DrAzevedoEcon

    @DrAzevedoEcon

    9 ай бұрын

    I'm happy to help! Thanks for watching!

  • @pinglu1510
    @pinglu1510 Жыл бұрын

    This intangible assets is unevaluable! Thank you, Dr.

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    You're welcome!

  • @CorkerAz
    @CorkerAz9 ай бұрын

    This is awesome, more grease to your elbow for the superb lectures, May God continue to shine the greater Light of His Surpassing wisdom on you

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you for the kind words!

  • @fedelicskaaria7289
    @fedelicskaaria72892 жыл бұрын

    Very insightful and intelligent Doc.Keep up

  • @kvafsu225
    @kvafsu2252 жыл бұрын

    Very informative lecture on Keynesian Economics. Thank you Sir.

  • @anaanzures420
    @anaanzures4202 жыл бұрын

    What a great lecture!

  • @mathewajayi2482
    @mathewajayi2482 Жыл бұрын

    This is just beautiful. Thank you sir.

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Thank you! Glad to be able to help!

  • @MJ-rg8mo
    @MJ-rg8mo5 ай бұрын

    OMG after searching multiple video and I end up here, I thought it was only a short 10 minute video so i did not skip it, after watching 30 min without realizing it was an hour for the full vid, and it is greattttttt!

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Glad you found it! I hope it helped.

  • @MuhammadAli-ym4oq
    @MuhammadAli-ym4oq2 жыл бұрын

    You are just amazing SIR.............Tons of thanks.

  • @MeomeoAchi
    @MeomeoAchi2 ай бұрын

    Thank you so much, you are truly the best teacher ever

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you...I really appreciate that.

  • @chhayankmulchandani4812
    @chhayankmulchandani48122 жыл бұрын

    Awesome lectures sire

  • @alliemarie2194
    @alliemarie2194 Жыл бұрын

    Slayed.

  • @dr.vanishreegaddi4554
    @dr.vanishreegaddi4554 Жыл бұрын

    best lecture ever heard ,Thank you professor

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    You're welcome!

  • @jakegoldfarb4500
    @jakegoldfarb45002 жыл бұрын

    Man is a goat

  • @BrianZhuo
    @BrianZhuo2 жыл бұрын

    Best explanation ever

  • @yinyin7614
    @yinyin76142 жыл бұрын

    Good video. Recommended.

  • @nenatx6499
    @nenatx64992 жыл бұрын

    That’s an amazing lecture! So clear and easy to follow. Feels like cheating. Thank you a lot!!!

  • @phillipgunter8375
    @phillipgunter8375 Жыл бұрын

    Absolutely brilliant!!!!

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Thanks! Glad to help!

  • @nurikm2331
    @nurikm23312 жыл бұрын

    Thank you SIR!

  • @siyandamaseko2312
    @siyandamaseko2312 Жыл бұрын

    I love this man.

  • @trietminhtranle2430
    @trietminhtranle2430 Жыл бұрын

    thank you so much for this lecture

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    You're welcome!

  • @princemuchindu31
    @princemuchindu312 жыл бұрын

    outstanding

  • @gauthamramachandran5792
    @gauthamramachandran57926 ай бұрын

    bros singlehandedly saving my econ grade

  • @DrAzevedoEcon

    @DrAzevedoEcon

    6 ай бұрын

    Happy to help!

  • @user-lr8nw5kr7b
    @user-lr8nw5kr7bАй бұрын

    Thank you professor

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    You're welcome! Thanks for watching

  • @aayushregmi4334
    @aayushregmi43347 ай бұрын

    I am here after my economics exam. Now I realised studying after exams is far more interesting than before exam 😂. Before exam I was studying for marks and now I am learning for my curiosity 😅

  • @rovercoupe7104

    @rovercoupe7104

    7 ай бұрын

    How did you do? M.

  • @DrAzevedoEcon

    @DrAzevedoEcon

    7 ай бұрын

    You're right....I always learn more when I'm genuinely interested in the topic. I hope you did well on the exam.

  • @nhathan428
    @nhathan428 Жыл бұрын

    thank you professor!!!

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    You're welcome!

  • @hoanglong4138
    @hoanglong41383 жыл бұрын

    thanks a lot sir

  • @sharifullahkhan6834
    @sharifullahkhan68343 ай бұрын

    Really great man ❤

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you! Thanks for watching

  • @ramzinasser2027
    @ramzinasser20272 жыл бұрын

    i appreciate you so much g!

  • @kishorebandi481
    @kishorebandi4813 жыл бұрын

    Sir,can you make a video on theory of consumer choice (ch 21)

  • @madhavhans2289
    @madhavhans22892 жыл бұрын

    Firstly great video But I have a question while you were explaining that 1930's example you said GDP fell by 25% and price by 22%, here price shouldn't have fell at least 25%?

  • @vidyanandkumar8878
    @vidyanandkumar88787 ай бұрын

    thank you

  • @DrAzevedoEcon

    @DrAzevedoEcon

    6 ай бұрын

    You're welcome! Glad to help.

  • @ewuramasam177
    @ewuramasam1772 жыл бұрын

    Wowww🤝👏👏

  • @ayanbdas4191
    @ayanbdas4191 Жыл бұрын

    u r my hero

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Ha! Thanks!

  • @rovercoupe7104
    @rovercoupe71047 ай бұрын

    Brilliant

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    Thank you!

  • @WijthaGayan
    @WijthaGayan Жыл бұрын

    hello prof, i have doubt about illicit drugs industry how they are continue business high tax and less advertisement ?

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Here's an interesting article on the economics of drug use: insight.kellogg.northwestern.edu/article/the-economics-of-the-illegal-drug-market

  • @user-om3cp2tk8z
    @user-om3cp2tk8z Жыл бұрын

    Sir, if the firm expects the price rise in near future, won't it increase it's production in the present to sell it at higher prices in the future?

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    That's a possibility. It depends on whether the good is durable once it has been produced as well as how much it costs for the firm to store it. If the good is durable and they can store it cheaply, they may increase production now. If the good is not durable (or if it is too expensive to store), they may decrease supply now so that they have the inputs necessary to increase supply in the future. Of course, this also depends on what they expect to happen to their input prices. Understanding expectations is challenging, because each firm can expect something different. I rarely use it as a determinant of demand or supply on an exam because you can create a story that makes just about anything possible.

  • @bbeeyangli
    @bbeeyangli5 ай бұрын

    Regarding stickiness, a free market could perhaps be considered as a market with zero stickiness (somewhat akin to the ideal gas model in physics), where the speed of information transmission is infinitely fast (ignoring relativity) and the speed of price adjustment is also infinitely fast, allowing the entire system to instantly adjust to an equilibrium state. In reality, markets have stickiness, which leads to a thought: if the speed at which the market adjusts to equilibrium is slower than the rate at which the market itself is changing (such as in macroeconomics), what would happen? Therefore a thought has occurred, if the government undertakes actions to accelerate the market (or prices) to reach equilibrium faster, would this be good or bad? (In this case, government intervention would not be a disturbance to equilibrium, but rather an acceleration towards it, or making it easier to achieve equilibrium. For example, establishing a price near the anticipated equilibrium point, maybe it is very challenging) (Later, I realized that the latter half of the video already mentioned something similar.Whether it is good or bad for the government to reduce market stickiness or increase market fluidity or accelerate the market is a matter of debate among economists.)

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Ай бұрын

    I think you're on the right track here. I do believe there are things that the government can do to try to reduce stickiness. One example is to create policy that reduces the cost of information. Cell phones have actually done a lot to help with this.

  • @suhanichaudhary5823
    @suhanichaudhary5823 Жыл бұрын

    sir pls upload ch 35

  • @tti4919
    @tti49192 жыл бұрын

    The boss

  • @olacieslicki3495
    @olacieslicki34952 жыл бұрын

    GOD

  • @lucacorti7133
    @lucacorti71332 жыл бұрын

    vorrei un professore come lei...

  • @seanobyrne5828
    @seanobyrne58284 ай бұрын

    Colin Robinson

  • @Unkn0wn-di1p
    @Unkn0wn-di1pАй бұрын

    Please change your marker.

  • @matasantanasmarcinkevicius204
    @matasantanasmarcinkevicius204 Жыл бұрын

    my man if not you i would fail my ecomy class

  • @DrAzevedoEcon

    @DrAzevedoEcon

    Жыл бұрын

    Haha! I'm happy to have been able to help!