Hey Jacob, I just got my scores today, and happily, I got 5s on both macro and micro. I am an international student who self-studied for both. I am incredibly thankful for your work. I was not satisfied with the quality of the AP classroom videos so I guess I watched all your videos. Thank you very much! By sharing this content for free you can't imagine how many people you impact. THANK YOU SOOOO MUCH
Awesome! I self-studied AP Micro last year using your resources and got a 4 :) This year, my school is offering AP Macro but I still visit your channel frequently. Thank you for your job!
Hey, I got both 5s on macro and micro. I just want to say thank you so much for your help, my teacher never taught me anything in class so I have to seft taught. Your video are way more detail and just overall better than the ap classroom one; you cover everything under the curriculum and made it free for everyone, that is such a blessing.
Wages and other resource prices fail in the long run, creating lower input costs, causing SRAS to shift back to the right. So even if it was a SRAS shift that created the output gap (like stagflation or cost push inflation), an SRAS shift will be what returns us to long-run equilibrium... Ceteris Paribus of course. I hope that helps!
@@ReviewEcon I could see that ....but doesnt that assume that expectations about prices would fall on their own in the LR...in the one example we have historically, expectations kept rising (wage price spiral).....it took extreme action by the FED to get the expectations down.......if that contractionary policy was not done....would not the higher resource prices and wages have become the new normal...leading to a decrease in potential output in the LR? While an unlikely scenario on the exam..this is a theoretical scenario that always bothered me.
These videos cover intro macro principles theory. Ceteris Paribus is a luxury never afforded to the real world macro economy. The recent and current situation is extremely complicated and involves many variables, not just one. We've had ever changing supply chain issues, energy price shocks, aggregate demand shocks, changes in inflation expectations, etc. Long run self adjustment also assumes no government action. Fiscal policy and monetary policy have both been at play, adding more variables to this situation. I expect Econ PHD candidates will be working to sort it out for decades.
I'd also add, some econ texts have the inflation rate on the Y axis instead of the PL. I'm that model (I actually like it better), you can reach long-run equilibrium with higher inflation.
Hey Jacob, I just got my scores today, and happily, I got 5s on both macro and micro. I am an international student who self-studied for both. I am incredibly thankful for your work. I was not satisfied with the quality of the AP classroom videos so I guess I watched all your videos. Thank you very much! By sharing this content for free you can't imagine how many people you impact. THANK YOU SOOOO MUCH
Congratulations! 🤘😎🎉🎊
And thank you for letting me know how you did and how helpful my videos were. Good luck next year and beyond!
Awesome! I self-studied AP Micro last year using your resources and got a 4 :) This year, my school is offering AP Macro but I still visit your channel frequently. Thank you for your job!
I'm so happy to have been a small part of your success! Good luck with macro! 😄
Hey, I got both 5s on macro and micro. I just want to say thank you so much for your help, my teacher never taught me anything in class so I have to seft taught. Your video are way more detail and just overall better than the ap classroom one; you cover everything under the curriculum and made it free for everyone, that is such a blessing.
I am so glad my videos helped! Thank you for stopping by and letting me know how things went!
hey, i got a 5 on macro & a 4 on micro and i just wanted to say that your videos were a great help. thank you
Awesome and congratulations! Thank you for letting me know!
So does the aggregate demand shift in Long run aggregate supply model
Yes, with no SRAS, the AD curve can still shift, that just means, in the long run, output doesn't change, only price levels change.
What is the LR self adjustment for stagflation?
Wages and other resource prices fail in the long run, creating lower input costs, causing SRAS to shift back to the right.
So even if it was a SRAS shift that created the output gap (like stagflation or cost push inflation), an SRAS shift will be what returns us to long-run equilibrium... Ceteris Paribus of course.
I hope that helps!
@@ReviewEcon I could see that ....but doesnt that assume that expectations about prices would fall on their own in the LR...in the one example we have historically, expectations kept rising (wage price spiral).....it took extreme action by the FED to get the expectations down.......if that contractionary policy was not done....would not the higher resource prices and wages have become the new normal...leading to a decrease in potential output in the LR? While an unlikely scenario on the exam..this is a theoretical scenario that always bothered me.
These videos cover intro macro principles theory. Ceteris Paribus is a luxury never afforded to the real world macro economy.
The recent and current situation is extremely complicated and involves many variables, not just one. We've had ever changing supply chain issues, energy price shocks, aggregate demand shocks, changes in inflation expectations, etc. Long run self adjustment also assumes no government action. Fiscal policy and monetary policy have both been at play, adding more variables to this situation.
I expect Econ PHD candidates will be working to sort it out for decades.
I'd also add, some econ texts have the inflation rate on the Y axis instead of the PL. I'm that model (I actually like it better), you can reach long-run equilibrium with higher inflation.
👍👍
Thank you!