The reality is yes. We can certainly have shifts of both the SRAS and AD. But for the AP exam (and many college exams), we isolate variables as much as possible, so it is best to look for which one curve is most impacted. That's why we shift AD with increases in investment and not SRAS (unless the question asks about impacts on economic growth or productivity changes as a result of the investment). I hope that helps!
tried watching jacob cliffords videos on this topic, couldn’t understand it. You went into detail which is exactly what i was looking for! Thank you!!
I'm so glad you found it helpful! Good luck with your studies!!
Thank you for these videos!
You're very welcome! 😄
you sir are a god damn legend
You're too kind. Thank you! 😀
Very helpful
Thank you! Good luck on your exams!
Best video ever! Thank you!!
You're very welcome!
Good luck on your exams!
Thank you. Very helpful !!!
You're very welcome! Good luck with your studies!
Are there any double shifts in which both AD/SRAS decrease OR in which AD increases while SRAS decreases?
The reality is yes. We can certainly have shifts of both the SRAS and AD. But for the AP exam (and many college exams), we isolate variables as much as possible, so it is best to look for which one curve is most impacted.
That's why we shift AD with increases in investment and not SRAS (unless the question asks about impacts on economic growth or productivity changes as a result of the investment).
I hope that helps!
At 6:44 does aggregate demand or sras decreases? Thank you for the video information was very well presented!
Oh no! That should be SRAS. I'll fix that and reupload soon. Thank you!
Just made a temporary fix where I cut our my reference to the curve until I can fix it and re-upload.