Aggregate demand | Aggregate demand and aggregate supply | Macroeconomics | Khan Academy

Understanding how aggregate demand is different from demand for a specific good or service. Justifications for the aggregate demand curve being downward sloping

Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course

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[PotadoTomado]

I like how in the foreign exchange explanation, we use price level decrease to show that the domestic currency weakens and THAT would drive exports, rather than the antecedent itself. I figure that aggregate demand is more readily thought about as "what if everyone became twice as rich" rather than "what if price levels were half".

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It don't go down.

IT DO GO DOWN!!

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can someone explain why prices would change?

[pavel]

Does anybody help with the issue: Saving is insensitive to income.
I don't understand the explanation: "When prices rise, the real interest rate also rises, which reduces investment expenditure". Ok, all clear and makes sense.
"Since the saving-investment differential must remain constant, the decrease in investment must be matched by an equivalent decrease in saving". - Why??? we have (S-I). If I goes down, to get a differential constant S has to go up.
"In order to bring about the fall in saving, the decrease in income (Y) required would be greater the more insensitive saving is to income".
Iy have no sense to me. Can anybody help?

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Thank you so much for this video!! My macroeconomics teacher could never lol some teachers need to realize just because they may be good at a subject doesn't mean they'll be good at teaching it.

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[countdown]

6:07 the first is called the wealth effect. let me write these down, the first is called the wealth effect. Wealth. the first is called the wealth effect.

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Take a shot everytime he says a other things equal and you'll fail the exam