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.

Let me write that in green.

Now you might already may be beging to have a sense here that maybe this winner takes all system might lead to some distortions and the biggest distortion of all is you can imagine a candidate who wins who wins the popular vote and loses the election, or loses in the electoral college.

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.

We don't see the origin of species.

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

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.

Scenario E, I raise it to 10.

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

Right here we're talking in microeconomic terms, but then if we think about aggregate supply and demand, so this is aggregate, so this is, let me write aggregate, aggregate right over here, this is price, this is real GDP, this is our aggregate demand, aggregate, aggregate demand.

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.

There has been an explosive increase in the demand for labor.

Total number of elements

Here is the demand forecast for 1998.

Imported cars are in strong demand.

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.

These goods are in great demand.

So it's shifting demand to the right.

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.

But to make this a little concrete,

There is a great demand for gasoline.

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

This is what we call the DEMAND SCHEDULE.

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.

So this demand itself, is this entire demand schedule.

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

So this demand curve will also have the same shape from the top left to the bottom right it satisfies the law of demand.

I should say how price relates to quantity demanded, and how quantity demanded relates to price.

So population goes up.

And their sales channel were going to be websites or stadium shops or ticket websites or direct mail.

So it's now at 4 and then that kills off a lot of the demand.

All the movements stopped at falsifying.