Macro 3.1 - Aggregate Demand

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This video covers topic 3.1 of the AP Macroeconomics Course Exam Description (CED). This video is all about Aggregate Demand. It covers the wealth effect, interest rate effect, net export effect, the difference between a a change in AD vs a change in the price level, as well as the aggregate demand shifters.

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  1. ReviewEcon
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I'm watching all these vids 1 day before my exam. They are really helpful as a revision explainer to guarantee a 5

eshaanagarwal
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One thing confuses me in the interest rate explanation is that, the nominal interest = real interest rate + inflation, PL increase on one hand indicates the inflation, on the other hand should decrease the real interest rate because consumers tend to save more rather than spending therefore the banks tend to depress the real interest rate.

王元鹏-of
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shiwook