Y1 4) Aggregate Demand - Shifts and the Downward Slope

Aggregate Demand - Shifts and the Downward Slope. A video covering Aggregate Demand - Shifts and the Downward Slope (Wealth Effect, Trade Effect and Interest Effect)

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[haleemarefai]

Thank you so much sir!!
I suggest you to play more ads between the video to generate more income because you desereve it!!
You are the perfect teacher I have ever seen!

[shadized]

Thank you! Here's a summary for myself: The aggregate demand curve is downward sloped; hence, the inverse relationship between price level and aggregate demand and price level and real GDP. Aggregate demand can be calculated via the equation C (consumption) + I (investment) + G (government spending) + (X-M) total exports. There are three reasons to why changes in the price levels can affect variables in the equation. These include the wealth effect (1) (purchasing level is inversely related to the price level and positively correlated to real GDP affecting consumption), the trade effect (2) (exports become more competitive when price level falls and imports become less competitive resulting in increase X and decrease in M) and the interest effect (3) (interest rates can be used to combat inflation as well as lower interest rates during lower inflation can be used to stimulate consumption and investment, as well as reduces the value of the exchange rate which increases the net export performance in X-M)

[zoad]

HOLY COW this was if not the best video ive seen on this topic, reviewing for my ap exam next week you sir are a life saver

[rokithragavan]

Goat Econ Teacher!!! Keep up the hard work!

[theegyptianlumberjackfirew]

I appreciate your style of teaching as it did fill that gap for me, and help me understand aggregate demand.

[AKCountess]

Awesome video, concise and clear. It really helped clear up a confusion I had in the trade effect. Than you :)

[khanmuneer]

Sir the way you explaining is outstanding mind-blowing
Thank you so much for this clearly concept 👏👍

[ishaaq]

Amazing video so educational my daddy my superhero 😕😕😕

[MuhammadAli-qfff]

When the teachers are being paid to spit out rubbish compared to this legend.

[ollyhughes]

Dal do i get extra credit if i talk about your downward slops instead?

[Max-sefb]

AD is the total demand for a given countries goods and services at a given point in time. AD is a measure of quantity though - not spending

[ameliamahmood]

Thanks sir, can the effects be used as evaluation?

[DJTejasMusic]

Anyone else sees this perfectly at 1.25x?

[mohosinahmed]

BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST BEST

[gabrielpazos]

Why does the substitution effect is not a price determinant of the Aggregate Demand?

[romant]

what does the Y on the x-axis represent

[RoverCoupe]

I thought that 'Y' meant 'income'. M.