When supply or demand change, the price and quantity in the market changes. See how a change in demand or supply affects price and quantity in this video. Created by Sal Khan.
Economists who studied the relationship between inflation and unemployment made an important modification to the Phillips curve model with the addition of the long-run Phillips curve (LRPC). When expectations are factored in, and there is enough time to adjust, the Phillips curve is vertical. Explore why in this video.
In this video, learn about how several scenarios affect the aggregate production function and economic growth.
In a closed economy, goods and services are exchanged in product markets and factors of production are exchanged in factor markets. In this video, we explore how to model this in a straightforward way using the circular flow model. Created by Sal Khan.
An introduction to the difference between command economies and market economies.
A brief look at how money has evolved over time from being printed on valuable substances (commodity money), to merely representing those valuable substances (commodity-backed money), to not representing anything at all (fiat money). Created by Grant Sanderson.
Trade benefits both agents when each specializes in what they have a comparative advantage in producing and trading with another agent who has a comparative advantage in something else. The gains from trade occur based on comparative advantage, not absolute advantage. Created by Sal Khan.
When two agents have differing opportunity costs, there is potential for both of the to benefit if they specialize in what they each have comparative advantage in. This video explores how two parties can get better outcomes by specializing in their comparative advantage and trading. Created by Sal Khan.
In this video we work through an example of a question like you might see on an AP microeconomics or AP Macroeconomics exam determining who has comparative advantage in producing a good using data from a table. Topics include how to calculate opportunity costs and determine who has comparative advantage based on opportunity cost.
Analyzing charts from New York Times to compare income trends across several countries over a 30 year time period. Created by Sal Khan.
When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports. In this video, we explore these components in more detail. Created by Sal Khan.
Connecting income to capital growth and potential inequality. A discussion with Sal Khan.
Introduction to the Investment/Savings curve. Created by Sal Khan.
The basic idea of a consumption function. Created by Sal Khan.
Thinking about a consumption function where taxes are also a function of income (which is more realistic than constant taxes). Created by Sal Khan.
Convergence on macro scale, A discussion with Sal Khan.
A real-world example of the concepts behind the AD-AS model is the oil shocks the United States experienced in the late 1970s. In this video, we break down some of the events going on at the time and use the AD-AS model to see if our predictions using this model match what really happened. Created by Sal Khan.
A real-world example of the concepts behind the AD-AS model is the oil shocks the United States experienced in the late 1970s. In this video, we break down some of the events going on at the time and use the AD-AS model to see if our predictions using this model match what really happened. Created by Sal Khan.
Critically looking at data on ROC and economic growth over millenia. A discussion with Sal Khan.
How government borrowing could have negative effects on investment and economic growth by "crowding out" private borrowers/investors in the loanable funds market.