Macroeconomics Unit 5 COMPLETE Summary - Policy Consequences - Updated for Ample Reserves
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Күн бұрынThis video covers all of the key points of Unit 5 from the AP Macroeconomics Course Exam Description (CED). Fiscal and Monetary Policy Interactions, Monetary Equation of Exchange, Debt and Deficits, Crowding Out, and the Phillips Curve. It has been newly updated to fit the new ample reserves model.
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Note: Topics are out of order because this is the oder in which they are covered in the ReviewEcon.com Total Review Booklet.
Note: AP©, Advanced Placement Program©, and College Board© are registered trademarks of the College Board, which was not involved in the production of, and does not endorse, this material.
@aaryankamdar6479 Жыл бұрын
I found this an hour before my Olympiad! It solved all of my queries! Thank you so much Mr. Jacob!
@ReviewEcon Жыл бұрын
You're very welcome! I sure hope your competition went well!
@vasudhapenmatsa5159 Ай бұрын
We're behind schedule in my class right now and we barely have time to cover anything past Unit 4. Your videos have been an amazing help for me. Thank you so much!
@ReviewEcon Ай бұрын
You're very welcome! Good luck on the upcoming exams!
@charliegottschalk3534 Жыл бұрын
Easy to understand explanations covering wide topics, this helped me a lot. Great video!
@ReviewEcon Жыл бұрын
I'm so glad it helped! Good luck with your studies!
@PK-gw5lb Жыл бұрын
Cramming before the Macro AP exam, thanks for the vid! It really helps!
@ReviewEcon Жыл бұрын
Thanks for watching! Good luck!
@mingostudio Жыл бұрын
such a good video, thanks for the help!
@ReviewEcon Жыл бұрын
Thank you! Good luck with your exams!
@user-eh6wp9ii2d 6 ай бұрын
this is soooo helpful!!! lit my fav econ channel! thankyou so muchhhhh! life saver frrrrrrrr
@ReviewEcon 6 ай бұрын
Thank you! 😄 And you're welcome!
@andrewbarsoum6240 Жыл бұрын
This is a brilliant video!
@ReviewEcon Жыл бұрын
Thank you!!
@kittykitkat7236 Ай бұрын
Thank you so much. My teacher did not teach us some concepts like the interact between MP and FP. Your summaries are so helpful and they show me what unit I need to go back to review. 😊Praying I get a 4.
@ReviewEcon Ай бұрын
You're very welcome! Good luck on Friday!
@BITStudioCode 2 ай бұрын
WOW, such a great review video and playlist, 1 and a half week before Econ Challenge state for David Ricardo division!!!
@ReviewEcon 2 ай бұрын
Good luck! 🤘😎
@YUBOYIN-es3lc 2 ай бұрын
Thanks for the video, it's really helpful for me to get all the concepts. It's almost the Big AP exam, hope that I will be doing great this time!
@ReviewEcon 2 ай бұрын
You're very welcome! Good luck on your exams!
@obiajulumgbechi 2 ай бұрын
@@ReviewEconaqaa
@vickyyylin1187 Жыл бұрын
Thank you!!!!!!! Best wish for tomorrow everyone
@ReviewEcon Жыл бұрын
You're very welcome! And yes! Good luck to you and everyone else taking the exam tomorrow!
@carterdyche 2 ай бұрын
I wish I had discovered this before unit 5 lol. Super helpful!
@ReviewEcon 2 ай бұрын
Better late than never! 😅 Good luck on your exams!
@sluppypuppy7318 Жыл бұрын
very good video thank you
@ReviewEcon Жыл бұрын
You're very welcome! Good luck with your exams!
@myahsalazar746 Жыл бұрын
thank you!
@ReviewEcon Жыл бұрын
You're welcome!
@asthenasia734 Ай бұрын
taking the ap exam tmr thanks for helping me
@ReviewEcon Ай бұрын
You're welcome! Good luck!
@brankye517 Жыл бұрын
I'm a little bit confused of the part where expansionary MP and FP both lead to the increase in AD. Because fiscal policy will increase the demand of loanable funds which increases the interest rate, thus decreasing AD. But fiscal policy prompts consumer spending and government purchase, which means it will also increase the AD. I feel like we cannot determine whether fiscal policy can affect the AD or not at this point.
@ReviewEcon Жыл бұрын
The expansionary impact of a decrease in taxes and/or increase in government spending will be less than the crowding out effect (decrease in Ig). The rightward AD shift of expansionary fiscal policy is the primary effect and the leftward AD shift from crowding out is the secondary effect. Focus on primary effects unless otherwise specified. I hope that helps!
@harishankar5901 Жыл бұрын
Thx dude
@ReviewEcon Жыл бұрын
You're welcome! Good luck with your studies!
@anarcgrrl Жыл бұрын
thanks brah
@ReviewEcon Жыл бұрын
You're welcome!
@micosstar Жыл бұрын
thanks! - mico
@ReviewEcon Жыл бұрын
You're welcome!
@k-k.4891 Жыл бұрын
Would the increase in money supply also shift the LRAS because there are more investment?
@ReviewEcon Жыл бұрын
So... This is a tricky one... As we have conflicting ideas in the Macro models. If a question asks about the long run impact of an increase in the money supply, The answer will be no change in real output but a higher price level. The reason being that the aggregate demand rightward shift is counteracted by a long run leftward shift of the short run area supply curve caused by increased inflation expectations. In this analysis the increased potential GDP from the increased investment is ignored. But, if the interest rate decreases, there will be an increase in gross investment. That gross investment will increase economic growth which we see as a right word shift of the long run aggregate supply curve. But my advice is to only consider the long run aggregate supply curve shift if the question asks about economic growth (or something along those lines).
@andrewmacdonald5367 3 ай бұрын
Legend.
@ReviewEcon 3 ай бұрын
Thank you! Good luck to your students on this year's exam!
@lilynonte454 Ай бұрын
thank you! quick question- for the SRPC shifting due to shift in SRAS, would that mean that unemployment rate doesn’t change, just an increase in inflation rate? hopefully this question makes sense, thank you!
@ReviewEcon Ай бұрын
Just like and SRAS shift causes a change in the PL and real output, an SRPC shift will cause a change in unemployment (the opposite direction of the change in real output) and cause a change in the inflation rate (the same direction as the change in the price level). I hope that helps!
@Linzesty Жыл бұрын
I am a Junior taking ap micro and macro, each in one semester, I hope I get fives on my ap exams :0
@ReviewEcon Жыл бұрын
I wish you the very best of luck!!
@so_obsessed_ Жыл бұрын
I’m also a junior taking macro in one semester (although not micro) and my teacher sucked so now I’m trying to re-learn everything in time for the exam 😅 we have like a week so good luck to us 🤞
@raiymbekb Жыл бұрын
@@so_obsessed_ same situation, 1 day before exam
@so_obsessed_ Жыл бұрын
@@raiymbekb yep. good luck tomorrow!
@chrisxu4389 Жыл бұрын
I love your hat! Where can I buy one?
@ReviewEcon Жыл бұрын
I'm not selling them at this point (maybe some day), I had it made on Etsy. Feel free to do the same! 😀
@jocabbb Жыл бұрын
watching this one hour before my macro exam😭
@ReviewEcon Жыл бұрын
You got this!! Good luck!
@ruiqiyin750 Жыл бұрын
I am sorry but the part in 5.1 about the effect of Expansionary MP and FP differs from the summary on Khan Academy. I am a bit confused
@ReviewEcon Жыл бұрын
I am not sure how Kahn academy teaches it, but there is a chance their videos haven't been updated to include the ample reserves monetary policy. But either way, both expansionary policies shift the AD curve right. Monetary policy decreases interest rates (in the money market for scarce reserves or reserves market for ample reserves) while fiscal policy increases interest rates (in the loanable funds market. Interest rates (and their impacts) are indeterminate as a result. Good luck on your exams!
@ruiqiyin750 Жыл бұрын
@@ReviewEcon Thank you so much for your reply. I double-checked your video with the summary chart on Khan. They didn't consider nor include the policy effect on the Money Market and Loanable fund market. Therefore, they neglected the contradicting effect on the interest rate of expansionary monetary policy and expansionary fiscal policy. Your analysis is more comprehensive!🥰
@ReviewEcon Жыл бұрын
I'm glad I could help! Good luck with the exam this year!
@fabiolalopez5585 Жыл бұрын
fabi was here
@ReviewEcon Жыл бұрын
Welcome fabi!
@block3737 Ай бұрын
🐊
@ReviewEcon Ай бұрын
Not sure what the alligator emoji means, but I'll take it as a compliment. 🤷♂️😅 Thank you! Good luck on your exams!
Khan Academy
Рет қаралды 1 МЛН
Carey LaManna
Рет қаралды 3,6 М.