wow thanks a ton for this one. It pretty much enhances my guess on your last video where I was trying to grasp the ceteris paribus concept for myself. I am 100% autodidactic on economy and, dude, you are my guru. Big respect. Keep on doing your thing. I would pay you for tutoring, but who needs tutoring when you explain it so well in these videos. Can't wait for the next one!
It is strange that the independent variable for both aggregate demand and aggregate supply is on the x axis and that the dependent is on the y. Is this always the case in economics? Is there a good reason for it or just convention?
Well that's an interesting question! I have searched abt it a lot and i think I have got to know about it. When we talk about independent variables, we always plot it on x axis and dependent on y axis. This is because the variable being plotted on y axis is actually dependent on vairable on x axis which is independent of all. When we need to visualize the relationship between two variables, we just go this way which is actually appropriate. In order to do it another way, you can do it, but, it would be a lot complex for you to visualize the relationship between two variables among which one is independent and another is dependent on the independent one.
Also the variables on X axis are independent, so they are manipulative (it means we can change Or manipulate them) but on y axis, the variable is dependent, so it can't be manipulated. This is another reason for the same
You're making the assumption that long-run aggregate supply is completely inelastic and all resources are being utilised fully and, lets face it - that's just unrealistic. I think you should have also talked about the Keynesian model where you can reach equilibrium when resources are not used to the full extent, which they never will be.
i really love how in sometimes where he talks and you hear his saliva in his mouth, for me that makes to content and information so juicy that he is actually hungry xd
The last statement of this video...is false. If you are watching these videos in order to pass an exam in that Economics course that you are required to take...by all means, continue viewing. If you are studying Economics as a subject you enjoy and potentially want to pursue a career in, look elsewhere.
Mr. Khan, you are not only an absolute GENIUS (teaching nearly everything on your site) but you are a LIFE-SAVER!!!
Have a uni Econ exam tomorrow, you're a life saver!!!!
makes life in school so easier and learning more interesting
wow thanks a ton for this one. It pretty much enhances my guess on your last video where I was trying to grasp the ceteris paribus concept for myself.
I am 100% autodidactic on economy and, dude, you are my guru. Big respect. Keep on doing your thing. I would pay you for tutoring, but who needs tutoring when you explain it so well in these videos.
Can't wait for the next one!
a WAR may happen and people would d- ... bad things would happen
My savior of final exam!!
your videos are very helpful and easy to understand!thank you so much! greetings from Greece
I loved the comment at 1:25! Nailed it ❤
Thank you so much :)
aggregate means total, so the total supply of the whole economy. just supply, means supply in one market. e.g. supply of apples
You are the best! God bless you
Role model of the decade
It is strange that the independent variable for both aggregate demand and aggregate supply is on the x axis and that the dependent is on the y.
Is this always the case in economics? Is there a good reason for it or just convention?
Well that's an interesting question! I have searched abt it a lot and i think I have got to know about it. When we talk about independent variables, we always plot it on x axis and dependent on y axis. This is because the variable being plotted on y axis is actually dependent on vairable on x axis which is independent of all. When we need to visualize the relationship between two variables, we just go this way which is actually appropriate.
In order to do it another way, you can do it, but, it would be a lot complex for you to visualize the relationship between two variables among which one is independent and another is dependent on the independent one.
Also the variables on X axis are independent, so they are manipulative (it means we can change Or manipulate them) but on y axis, the variable is dependent, so it can't be manipulated. This is another reason for the same
Let me ask why. Why do you think the production level in the long run is still dependent on prices?
keynesian LRAS is the same idea as the classical LRAS. however, keynes said that we are all dead in the long run
why are you such a better teacher than my idiot macro teacher that I'm paying to listen to?
then don't pay for your teacher
sounds like thomas sowell
does this apply to AQA economics for A-Level?
Thank you!
Nice
why isn't there more production if prices are higher?
prices are not a function of output in this particular model
what is the difference between supply and aggregate supply?
Is the P on the Y axis price level?
Jillienne Bennett yes it is
Isn't it sometimes irrational to consider economic agents perfectly rational like this?
Yes that’s why the Keynesian lras exists
Hey Khan, is the natural rate of unemployment the same thing as the NAIRU?
No
yup...both are same
in 1975 natural rate of unemployment was termed as NAIRU ...
No idiot
is thist he keyneasian or classic version
You're making the assumption that long-run aggregate supply is completely inelastic and all resources are being utilised fully and, lets face it - that's just unrealistic. I think you should have also talked about the Keynesian model where you can reach equilibrium when resources are not used to the full extent, which they never will be.
ZM Modern day economists do make that assumption. Unlike Keynesian economists. You can refer to the video on Keynesian aggregate supply
i really love how in sometimes where he talks and you hear his saliva in his mouth, for me that makes to content and information so juicy that he is actually hungry xd
cool
The last statement of this video...is false. If you are watching these videos in order to pass an exam in that Economics course that you are required to take...by all means, continue viewing. If you are studying Economics as a subject you enjoy and potentially want to pursue a career in, look elsewhere.
he was only giving a theoretical position
You speak quite fast
He's a Neo classist gasp! Jk
Thank you!!!