Actually, we're going to start with aggregate demand and then start talking about aggregate supply.

We can go buy that house.

In this and the next few videos we're going to be studying something called

If we talk about an actual quantity, we should say the quantity demanded.

And then our short run aggregate supply might look something like this, aggregate supply in the short run.

And so, for any given price point, the demand would increase.

Let me write that in green.

Scenario E, I raise it to 10.

If we lower the price of a product, that will raise the quantity demanded of that product.

Or another way to think of it is, is this entire demand curve.

So these are two different levers, two different tools that have been used in governments all around the world to shift aggregate demand one way or another or attempt to shift aggregate demand one way or the other.

Total number of elements

The supply demand balance is tight.

They decide to sell their house.

WRlTING Demand goes up.

There is more people that have money in their pockets.

Even the new Jack 2 field in the gulf of Mexico would only supply a few months of domestic demand.

And so essentially, it will shift, it will change the entire demand curve.

I'd rather have than just getting more of this thing right over here

So, income goes up, then that increases demand.

And I had this captured market. You didn't need contracts.

This is the total numbers of cupcakes all of the factories in the market can produce.

This column let me put my price.

And so if income goes up for this laptop, the demand will increase.

When we hold everything else equal, we're moving along a given demand curve.

People will borrow money not to just, like, not to just sit, but stuff it into their, into their mattresses, they'll borrow that money to go invest it in some way, to spend it.

Here is the demand forecast for 1998.

Imported cars are in strong demand.

All the movements stopped at falsifying.

So income goes down, demand goes up.

So we'll put price in the vertical axis and we'll put quantity demanded in the horizontal axis.

When everything else is equal and you're only changing price, you're not changing demand.

And in those cupcake economics videos, I showed that if the demand is pushing up against capacity.

So, it would shift the demand curve to the right or it would increase demand.

Supply is relative to demand.

The price reflects the demand.

These goods are in great demand.

There is a great demand for gasoline.

The lust denies the need.

And then the last one we'll talk about

So it's shifting demand to the right.

And if there's more cash in the banking system this guy right over here needs less

So I get to 8 now.

This is what we call the DEMAND SCHEDULE.

When we're talking about a particular quantity demanded we say quantity demanded we don't just say demand