A brief introduction to the structure of the data that we will use this semester. Most of our examples will use either cross-sectional data or time-series data. If things go well then we may cover the chapter on panel data at the end of the semester.
This video explains how to shift the short-run aggregate supply curve. The short-run aggregate supply curve is determined by the costs of production. Anything which increases the costs of production (while holding the price level constant) will decrease profits per unit of output and shift the short-run aggregate supply curve to the left. Similarly, anything which decreases the costs of production (while holding the price level constant) will increase profits per unit of output and shift the short-run aggregate supply curve to the right.
This video explains the intuition behind shifting the demand curve for loanable funds. Anything that increases the amount of investment that households and firms want to undertake (other than a decrease in the real interest rate) will cause the demand curve for loanable funds to shift to the right. Likewise, anything that decreases the amount of investment that households and firms want to undertake (other than an increase in the real interest rate) will cause the demand curve for loanable funds to shift to the left.
This video explains the effect of taxes and transfer payment on national savings and, therefore, on the supply of loanable funds.
This video explains the difference between GDP and potential GDP using U.S. real GDP data from 2012.
This video explains why the supply curve for loanable funds increases. Anything which increases national savings (other than a decrease in the real interest rate) will shift the supply curve of loanable funds to the right. Anything which decreases national savings (other than an increase in the real interest rate) will shift the supply curve of loanable funds to the left.
This video explains the expenditure approach to measuring GDP.
This video explains the intuition behind what shifts the demand curve for bonds.
This video explains why the production function shifts.
This video explains how the market moves from one equilibrium to another when the supply of loanable funds shifts.
This video shows you how to calculate the inflation rate using the CPI as a measure of the average price level.
Brief introduction to the difference between experimental and observational data. Experimental data is the best type of data for causal inference. Unfortunately, social sciences such as economics are usually limited to observational data.
This video explains how to shift the aggregate demand curve. The aggregate demand curve represents aggregate expenditure so anything that increases aggregate expenditure (other than a decrease in the price level) will shift the aggregate demand curve to the right. Similarly, anything that decreases aggregate expenditure (other than an increase in the price level) will shift the aggregate demand curve to the left.
This video explains what the Rule of 70 is using the growth rate of U.S. real GDP as an example.
Very brief introduction to government spending and taxing in the circular flow diagram.
This video explains why increases in labor productivity is the main source of increases in the standard of living.
This video explains the difference between real GDP and nominal GDP. Nominal GDP is GDP calculated using prices from the current year. For example, nominal GDP in 2013 is calculated using prices from 2013, so if an apple costs $1 in 2013 then each apple produced is worth $1 for GDP. Suppose that the price of apples rises to $2 in 2014. Real GDP is GDP calculated using prices from the base year. If 2013 is the base year and we want to calculate real GDP for 2014 then each apple produced in 2014 is worth $1 towards GDP even though apples sell for $2 in 2014. Real GDP uses constant prices, so the only way real GDP can change is if the quantities change. Therefore, the real GDP calculation purges price changes from our measure of GDP.
I modify the circular flow diagram to explain the role of financial intermediaries.
This video describes the equilibrium in the loanable funds model.
This video explains the relationship between taxes, transfer payments, and national savings.
This video explains the intuitive difference between real and nominal variables. Nominal variables are measured in dollars and we experience the world in nominal terms. In contrast, real varaibles are measured in quantities and we have to adjust for the price level to convert from nominal to real variables (when the variables such as wages are measured in dollars) or we have to adjust for the inflation rate to convert from nominal to real variables (when the variables such as interest rattes are measured in percentage points).
This video continues the explanation for why the production function shifts and also explains the effect of the shift on the marginal product of capital.
This video describes the difference between real and nominal interest rates.
This video explains the difference between the short-run equilibrium and the long-run equilibrium. It also explains how the labor market adjusts to move the economy to the long-run equilibrium.
This video uses the aggregate production function to explain why catch-up will occur for some countries.
This video uses the loanable funds model and the aggregate production function to explain the long-run costs of budget deficits.
This video explains the difference between the price level and inflation.
This video explains some of the limitations with using the Consumer Price Index as a measure of the cost of living.
This video shows you how to calculate U.S. real GDP for the year 2012.
This video shows you how to calculate the one-period growth rate for the price level and real GDP. However, the formula is quite general can you can use it to calculate the one period growth rate for any variable.
This video shows you how to calculate a real variable using the nominal variable and the price level. We used a similar procedure to calculate real GDP and this procedure will work anytime that the variable you are interested in is measured in dollars. If the variable you are interested in is measured in percentage points then you should watch the video on real versus nominal interest rates to learn how to do the calculation.
This video briefly introduces fiscal policy and some of its limitations using the circular flow diagram.
This video uses gapminder.org data to show the phenomenon of convergence or catch-up and to show the relationship between real GDP per capita and measures of the standard of living such as life expectancy and infant mortality.
This video provides a very brief overview of the model that economists use for aggregate production. This model is the basis for how economists think about the aggregate supply side of the economy.
This video explains how the standard unemployment rate measure (U-3) is bias downward due to 1) discouraged worker effect and 2) how part-time workers are treated.
This video explains how to derive the aggregate demand curve.
This video explains the movement from one equilibrium to another when the demand curve shifts.
This video explains how economists come up with a single number (Gross Domestic Product) to represent the size of the economy. Representing the size of the economy with a single number allows us to compare the size of an economy over time (Is the U.S. economy larger in 2013 than in 2000?) and across countries (Is the U.S. economy larger than the Chinese economy?).
This video explains how to derive the short-run aggregate supply curve.
This video explains why the equilibrium in the loanable funds model is stable. In other words, if you are not in equilibrium then why do you return to equilibrium and if you are in equilibrium then why do you tend to stay there.
This video explains how to derive the supply curve for loanable funds.
This is a short introduction to the circular flow diagram. We will come back to this diagram for basic intuition throughout the course so it is important that you understand how the diagram works. It is just me talking for about the first minute.
This is the third part of our initial discussion of causal inference.
This video shows you how to derive the demand curve for loanable funds. For simplicity we assume that all investment is financed by borrowing in financial markets.