The math of renting vs. buying a home. Challenging the notion that it is always better to buy. Created by Sal Khan.
Thinking about whether limited liability or double taxation is fair. Created by Sal Khan.
Is rising inequality necessarily bad? A discussion with Sal Khan.
A discussion of the virtues and/or vices of short selling. Created by Sal Khan.
Analyzing planned expenditures versus actual output using the Keynesian Cross. Created by Sal Khan.
More on shifting aggregate planned expenditures. Connecting to the multiplier. Created by Sal Khan.
Contrasting Keynesian and Classical Thinking. Created by Sal Khan.
London InterBank Offer Rate. Created by Sal Khan.
How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve. Created by Sal Khan.
The basis of the labor supply curve is the tradeoff of labor and leisure. When wages increase, the opportunity cost of leisure increases and people supply more labor. Interestingly, this is not always the case! At higher wages, the marginal benefit of higher wages becomes lower and when it drops below the marginal benefit of leisure, people switch to more leisure and less labor. This leads to the rather unusual looking backward bending labor supply curve.
The law of demand states that as the price of a good decreases, the quantity demanded of that good increases. In other words, the law of demand states that the demand curve, as a function of price and quantity, is always downward sloping. In this video, we explore the law of demand and its implications for graphing demand curves. Created by Sal Khan.
In this video we explore the law of supply which states that quantity supplied increases as price increases. We use a supply schedule to describe the quantities a seller is willing to sell at different prices, and then translate the supply schedule into a supply curve that illustrates the law of supply. Created by Sal Khan.
GDP is the most commonly used measure of output, but it leaves some things out. Learn about the limitations of GDP in this video.
Thinking about how real GDP can drive real interest rates. Created by Sal Khan.
How do savers and borrowers find each other? In the market for loanable funds! In this video, learn how the demand of loanable funds and the supply of loanable funds interact to determine real interest rates.
We claim that aggregate supply is not responsive to changes in the price level in the long run, leading to a vertical long-run aggregate supply (LRAS) curve, but why? In this video we explore why aggregate supply may not be influenced by prices in the long-run. Created by Sal Khan.
In this video we explore the long run average total cost curve and how average costs vary when all inputs can be adjusted.
In this video, we compare and contrast the long run outcomes for monopolistic competition, monopolies, and perfect competition.
A firm in a perfectly competitive market might be able to earn economic profit in the short run, but not in the long run. Learn about the process that brings a firm to normal economic profits in this video.
A demand shock has a short-run effect on an output and unemployment, but in the long run only the price level will be impacted. If there is an increase in aggregate demand, the price level will go up. Once wages have adjusted to that inflation in the long run, SRAS decreases and returns the economy to full employment output. Shocks do not cause economic growth, only changes in full employment output cause economic growth.