An Introduction to Aggregate Supply

The Aggregate Supply curve is one of the more complicated concepts in Macroeconomics. This video explains the theories behind the short-run and the long-run AS curves, and shows how a nation's economy will respond to a change in aggregate demand in both the fixed-wage and the flexible-wage periods.

[salooomsamra]

You are better than my macroeconomic professor, I hope we have professors like you in my University.

Btw, I'm an engineering student and I was able to understand every single point in this video, you have a really effective and organized way to teach a concept even if the student does not have a background about it.

Thank you,

# RESPECT

[harryarmstrong]

Only video on the whole of YouTube that managed to explain this concept to me clearly

[theamateur]

Your teaching makes concepts crystal clear, even better than jacob Clifford and khan academy! Thanks a trillion!

[taewill]

i am a macroeconomics student in the caribbean and everything just seemed like a new language until now. Thank you so much. i almost gave up.

[imskkhannalivelifefullest]

THANKS ALOT FOR HELPING THROUGH THIS VIDEO. I AM GLAD I CAME ACROSS THIS, IT HELPED ME GET A REALLY GOOD MARK ON MY FINAL! A TON

[cavesloth]

This is the best video I could find which explains this. Thanks

[AsianDramaQueen]

Thank you so much. It's very easy to understand. Much better than my econ teacher at least :) xx

[msbbenin]

Jason, i would love to see your face as i don't think that picture there is you. Please put a face to this fantastic tutorial. I'm so addicted to your tutorials. I don't attend econ lectures anymore as i never get what my proffessor is on about but you make it pleasant to for students to follow, you tell it like a soap story line. I've learned alot. Thank you so much.

[CezarSaid]

you are better than my Professor, Thank you.

[keckelma]

3 hours until my macroecon final... I think this video just bumped up my grade 10%. I'm pretty sure college will be obsolete in the future as people realize the quality of instruction on YouTube is often superior to a 300 person lecture hall.

[chesterin]

THANK YOU SO MUCH, after watching you video I have a clear understanding of the subject.

[StateCrime]

Please, more playlists. Great videos.

[BUBALAJOLIE]

i love ur videos so easy to understand....ur great....after my lecture i always come

[sammystaxs]

Man this helped, Please keep making your video....Macro exam tomorrow :D

[patriotsfanmets]

Thank you for posting this video, ill def be checking out your other macro videos after I take this test im cramming for :p

[Gstyliie]

Im loving this..its giving me a productive hour for my brain..but you dint finish tho..is there a part 2 or something..i need to know abwt the long run

[DrSwagMeOut]

This was extremely thorough thank you so much.

[luisgentil]

Let me try to answer that: The full employment level, in a supply/demand curve for labor, is the equilibrium quantity of labor in the production that matches what firms are willing to pay for labor with what workers are willing to earn. An increase in aggregate demand will increase the demand for labor, which is the marginal benefit for firms to employ more labor, so firms will be willing to spend more with hirings. They will simply hire workers who couldn't supply the marginal benefit before.

[caribbeanqueen]

thank you. you have helped clear up the confusion.
i wished that u had addressed interest rates and contractionary policies though

[polvotierno]

In the income measure of GDP, you mentioned that there were other forms of income besides wages... profit, rent and interest on capital.
Couldn't one of these other forms of income decrease instead of wages to come back to LRAS?
In the present recession, business profits are up, but there is pressure to lower wages. How could the economy return to LRAS, if profits are rising? Would there be any need to lower wages in this case?