I'd say it depends (classic economist answer). It's designed for people who need to review micro or macro principles before exam day. If you've been learning micro or macro principles and have an upcoming exam, then yes! 😀
@yankee61615 күн бұрын
You got 5 out of 5 on Q3. Nice job, champ!
@ReviewEcon5 күн бұрын
🤘😎 Thank you! 😀
@glennwatson33136 күн бұрын
You have helped me so much already that I hate to ask but what the heck. I will ask this same question at the Fed. The $3 trillion in ample reserves belongs to private banks right? But is that money actually held in the private bank's vaults or is it kept in the Fed because the Fed pays interest on it to the private banks, this interest rate being the IORB. I hope its the later because that it what I tell my kids.
@ReviewEcon5 күн бұрын
Good question! I don't know completely (maybe you'll get it a complete answer in St Louis). I understand the reserves are owned by banks (as assets on that balance sheet) . I expect most of it is digital/spreadsheet money and not physical money (since most money is digitally deposited). And if that is the case, at least most would be (digitally) on deposit with the FED where they earn IOR. That said, I do worry about a potential backlash to banks earning IOR for not lending.
@ReviewEcon5 күн бұрын
And no worries! Ask any questions you like. I'll answer when I can and tell you I don't know as necessary. 😅
@glennwatson33135 күн бұрын
@@ReviewEcon Thanks for confirming what I though to be true. On another note, I believe AP Central did a poor job of rolling out the concept of ample reserves. When the concept first came out it was unclear what we should teach. There were different words and different graphs being used by the Fed and AP and the textbooks to illustrate ample reserves. People like you stepped in to lead the way in explaining how ample reserves worked but AP Central really dropped the ball.
@glennwatson33136 күн бұрын
At 8:40 you said "banks" control administered rates like the Discount Rate and the IORB. Did you mean the Fed controls administered rates? I hope so, because that is what I told my kids last year.
@ReviewEcon6 күн бұрын
Should have said central banks as the slide indicates. I'll add that to my list of future fixes. 😀
@ReviewEcon6 күн бұрын
In the meantime, I just eddited out the reference. Thank you! :-)
@glennwatson33136 күн бұрын
I'm going to the St Louis Fed next month for a three day seminar. They are planning a session on Ample Reserves.
@ReviewEcon6 күн бұрын
Nice! I'm jealous! Hopefully I can make it out to the St. Louis AP Institute at some point. 🤞
@wtdssrilanka48806 күн бұрын
I'm sri lanka 🇱🇰 . Verry good video . I'm school student . Nice to meet you sir❤❤
@ReviewEcon6 күн бұрын
Thank you! I wish you the very best on your studies! Good luck to you! 😄
@elviceddy31686 күн бұрын
So does the aggregate demand shift in Long run aggregate supply model
@ReviewEcon6 күн бұрын
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.
@thephrog61248 күн бұрын
Just started studying for AP Micro and Macro for next year, and I honestly find your videos to be more comprehensive when compared with Mr. Clifford's videos (his are still great, of course!) Thanks for thoroughly explaining the calculations <3 Subscribed!
@frankyclasic899011 күн бұрын
Hi im from srilanka this is very useful class for MFE ❤❤❤❤❤
@ReviewEcon6 күн бұрын
Awesome! Good luck with your studies!
@zigakozel471113 күн бұрын
Legend
@ReviewEcon13 күн бұрын
Thank you!
@lukesteele501317 күн бұрын
23:11 , I assume you mean right?
@ReviewEcon17 күн бұрын
No, it's actually left. Since more firms enter the market, each firm has fewer customers (smaller market size for each firm). That means each firm has less demand. As a result, the demand and MR shift left. I hope that helps!
@kevinlawson303320 күн бұрын
Cant remember the ezams but im sure i passed them at least ik them for the exam
@ReviewEcon20 күн бұрын
Awesome!
@MelissaFortune26 күн бұрын
Lol. Okay so I just bought my notebook and of course the first thing I'm hearing is anything at 4 hours over studying you're basically at a loss. I've been studying since Dawn broke . So don't test me with a good time LOL so now I'm going to just stop for a minute and just start reading your booklet that I just bought. My first test is this evening wish me Godspeed
@ReviewEcon26 күн бұрын
Good luck!! You got this! 🤞🤞🤘😎
@MelissaFortune26 күн бұрын
Peace. I literally just bought your package with my last call my hard times friend anywho I'm so excited I can kind of understand you better than any of my teachers and I got a test tonight I might not might pass that one but I feel with your information I'll be able to pass the course ultimately thanks again
@ReviewEcon22 күн бұрын
I sure hope that test went well for you!! 🤞🤞
@barronmulenga509228 күн бұрын
Nice explanations
@ReviewEcon28 күн бұрын
Thank you! Good luck on your exams!
@ryanjiang137629 күн бұрын
Bro's a walking W
@ReviewEcon29 күн бұрын
You're too kind! Thank you! 😄
@lileannamtz29 күн бұрын
im so cooked
@ReviewEcon29 күн бұрын
Oh no! Good luck!
@MelissaFortune29 күн бұрын
Jacob!! LOL did I already tell you you sir are a true godsend!? This is helping me so very much seriously like I appreciate you so much thank you
@ReviewEcon29 күн бұрын
You're very welcome! Good luck on your exams!
@MelissaFortune29 күн бұрын
You are such a godsend thank you so much!!
@ReviewEcon29 күн бұрын
You're very welcome! 😄
@keenliftingАй бұрын
GG Chat 💀💀😭😭😭😭😭
@ReviewEcon29 күн бұрын
Good luck! 🤞🤞🤞
@MelissaFortuneАй бұрын
Brother you are a God send sir!!! I've been in college all my life I enjoy school and as an entrepreneur I just go to classes to make sure I'm better at my offerings in the market that being said this was the first class of all of the classes that I flunked given the teacher was total no response so any questions were never addressed by him. So not only am I put output thousands of dollars because I'm an out-of-state client with my GPA and with my lack of degree because that was the last class I was waiting on to pick up a degree I found your channel I'm so appreciative and graphs is what's killing me because for whatever reason although I'm an intelligent I cannot get these economic graphs down it's like no matter what I could think that I understand I try to put it on paper it's just doesn't work out but finding your channel has been such a blessing thank you thank you thank you thank you
@ReviewEcon29 күн бұрын
I'm sorry you haven't had great success so far, I sure hope my videos are helpful! I always tell my own students. Economics (at least micro and macro principles) is extremely difficult... until it's not! Then, it's easy. When it clicks will be different for everyone, but you can definitely get it. I wish you the very best of luck! 🤘😎😄
@idknoname120Ай бұрын
Wish me luck guys tomorrow is the big day. Now lets start the video
@ReviewEconАй бұрын
Good luck! 😄
@jinga108Ай бұрын
thank you for your videos and your website, just going through all of it is really helpful for studying for the exam!
@ReviewEconАй бұрын
You're very welcome! Good luck on the exam!
@lattedreaxmАй бұрын
1 hour before test, i had it rescheduled and its the last day of School
@ReviewEconАй бұрын
Good luck today!
@calebgymnastics3653Ай бұрын
Had this last semester and taking make up AP tomorrow. Life saver, thank you !
@ReviewEconАй бұрын
You're welcome! Good luck tomorrow!
@isaacbedau5930Ай бұрын
im cooked
@ReviewEconАй бұрын
Oh no! Good luck! 🤞🤞🤞
@SkyblocksGuildHypixelPitАй бұрын
Would you get the point if you put the Total Cost instead of the average total cost for FRQ #2 Part E. Saying the total cost is increasing by $300 and the quantity is increasing by 10. I know the curve is the LRATC, but would using blank total cost have the same logic?
@ReviewEconАй бұрын
While it could depend on what you said, I expect the rubric will require an ATC connection. But if you discuss the change ratio of output to cost there is a chance they could accept it.
@SkyblocksGuildHypixelPitАй бұрын
@@ReviewEcon Alr! Im taking the makeup exam cause I had an AP Exam intersection. Obviously you dont actually know, but would you predict the FRQs or MCQs be alike at all or ask similar concepts?
@Zzzlive.2370Ай бұрын
@ReviewEcon
@ReviewEconАй бұрын
Hello! 😄
@Zzzlive.2370Ай бұрын
are you sure of part C? wouldnt the new price be at 60 not 75$? because of the 30$ subsidy?
@ReviewEconАй бұрын
The price paid is found at the new intersection. 😄
@violet201Ай бұрын
Watching this right before my makeup macro AP exam, such a life saver thank you so much!!!
@ReviewEconАй бұрын
You're very welcome! Good luck!
@so.phiaaaАй бұрын
At 14:18, did you mean to say the during contractions, transfer payments increase because more people are unemployed not fewer?
@ReviewEconАй бұрын
It's a bit hard to hear but I say fewer both times "fewer employed" during contractions and "fewer unemployed" during expansions. Good luck!
@user-ph9iv9yt5pАй бұрын
Watching this 20 minutes before the exam
@ReviewEconАй бұрын
Good luck!
@jaidays995Ай бұрын
He has helped me understand so much in my Macro class.
@ReviewEconАй бұрын
Awesome! 😄
@zoran-s1943Ай бұрын
taking the make up macro exam tomorrow
@ReviewEconАй бұрын
Good luck! 😄
@frankmcd23Ай бұрын
I take the makeup tomorrow wish me luck boys
@ReviewEconАй бұрын
Good luck! 🤘😎
@mooons9183Ай бұрын
JUST one more thing, for the foreign exchange market graph, why is Mexico's supply of loanable funds decrease and U.S. supply of loanable funds increase? Won't people in US take out more loans since the U.S. currency appreciated?
@ReviewEconАй бұрын
Financial Capital (money) from around the world flows towards high interest rates. When financial Capital flows into a country, the supply of loanable funds increases. The loans people take out is part of the demand for loanable funds. And the quantity demanded increases when the supply increases.
@mooons9183Ай бұрын
@@ReviewEcon thank you
@mooons9183Ай бұрын
for the money market graph, you said that the price level is a part of the transaction cost. so an increase in price level is going to shift the money demand to the right?? but in other graphs, an increase in price level is only movement along the aggregate demand curve?
@ReviewEconАй бұрын
When the axis is price level a change in price level is movement along the curve. Here the Y axis is nominal interest rate. A change in something other than the Y axis label will cause a shift. 😄
@mooons9183Ай бұрын
@@ReviewEcon Thank you!!
@mooons9183Ай бұрын
@ReviewEcon unrelated, but for the reserve market questions, when the central bank increases administered rates, can you also say they increase administered interest rates and for the graph you shift both of the lines?? Thank you so much!!
@mooons9183Ай бұрын
heyy, does the civilian population in this case at 2:44, include everyone, even people younger than 16?
@ReviewEconАй бұрын
The BLS uses this formula for the labor force participation rate: (Labor Force ÷ Civilian Noninstitutional Population) x 100 But some countries use the entire population while others use only working age citizens. That said, the AP exam has never required any distinction. Just take those working plus those looking and divide by whatever number they give you for the population (then times 100). I hope that helps!
@mooons9183Ай бұрын
@@ReviewEcon thank you!!
@isabellechen9104Ай бұрын
for frq 3 if net exports decrease wouldnt that make the currency appreciate, so the supply of JMD would move to the left?
@ReviewEconАй бұрын
When net exports decrease, currencies depreciate. Falling exports cause a decrease in demand for a currency and rising imports cause the supply of a currency to increase.
@nklpapa1Ай бұрын
Excellent
@ReviewEconАй бұрын
Thank you!
@Moonlit._Ай бұрын
would you get the 3c question right if you label the y axis as price of MYR in terms of JPY??
@ReviewEconАй бұрын
My understanding is that's just fine! 😄
@Moonlit._Ай бұрын
@@ReviewEcon thank you!!
@omarqasem747Ай бұрын
but if the demand for labor increased , wont the mrp be affected too, and vive versa, since D equals all mrps???( i mean demand in firm and demand in market, isnt the demand in market equal MRP or D of all firms)
@ReviewEconАй бұрын
Not sure I understand the question, but... Market demand is the sum of all firm demand (MRP), but an increase in market demand won't necessarily shift firm demand. Also each firm is too tiny to impact the market so a shift of firm demand (MRP) won't shift market demand unless the change impacts all firms. I hope that helps!
@omarqasem747Ай бұрын
@@ReviewEcon oh got it, thanks, it's just the shifter are somehow confusing to know whether to change the market demand or firm demand
@user-ph9iv9yt5pАй бұрын
With expansionary monetary policy, the government increases money supply, so it eventually decreases nominal interest rate?
@ReviewEconАй бұрын
When there are limited reserves, yes. But this question deals with ample reserves.
@user-ph9iv9yt5pАй бұрын
With high inflation interest rates also rise?
@ReviewEconАй бұрын
Nominal rates rise, correct.
@amyliu7745Ай бұрын
Would price level as a shifter shift both the supply and demand curves then?
@ReviewEconАй бұрын
Yes, but you only need to shift one curve on the AP exam. They will accept either shift, or will tell you which curve to shift.
@amyliu7745Ай бұрын
What is the label for the y axis? Why is it price?
@ReviewEconАй бұрын
It's not just Price. It is the exchange rate, or the price of one currency in terms of another currency. When people buy currency, the price is the other currency. There are several other acceptable ways to label the Y axis. Use what your professor or teacher prefers.
@amyliu7745Ай бұрын
@@ReviewEcon Ohh okay. If I labeled it as "e", would that be acceptable to Collegeboard?
@ReviewEconАй бұрын
My understanding is that is not enough. They want both currencies on the y axis. Comparison currency/market currency is the standard. So if it is the market for US dollars being compared to Japanese Yen, ¥/$ would be the label.
@amyliu7745Ай бұрын
@@ReviewEcon Oh sorry I should have clarified. Like my label for the y axis would still be pesos per $, but like I would say for each point, e1 and e2?
@ReviewEconАй бұрын
Oh! Gotcha, yes e is acceptable. 😄
@prpsnt4362Ай бұрын
Hey I'm going to take the test on 24th of May, will the FRQ be the same as this or Set 1 or will it be a different test?
@ReviewEconАй бұрын
It will be different.
@amyliu7745Ай бұрын
At 2:30, is debit the same thing as debt?
@ReviewEconАй бұрын
Debit is the term used for a decrease in the balance. Not necessarily negative balance just decreasing.
@amyliu7745Ай бұрын
@@ReviewEcon Oh okay gotcha. So is deficit the same thing as debt then?
@ReviewEconАй бұрын
@amyliu7745 for the balance of payments, deficit means negative value. I hesitate to use the word debt as it isn't owed to anyone or anything.
@amyliu7745Ай бұрын
At 1:55, if the income earned from the investment is going to be counted in the current account, what is counted in the capital and financial account of a direct foreign investment then?
@ReviewEconАй бұрын
The original purchase of the investment is CFA. So if I buy Alibaba stock, that is CFA, when I earn dividends on that stock those dividends are CA.
@mooons9183Ай бұрын
hey jacob, I am getting mixed answers about this. Does the reserve requirement apply to savings deposits as well or is it only checking? Thank you for your videos man!!
@ReviewEconАй бұрын
I agree, mixed answers. For the purposes of the AP exam (the focus of these videos), it's only demand deposits. The reality is it could be either or both. And in the US, the reserve requirement is 0% for all deposits. I hope that helps!
@mooons9183Ай бұрын
@@ReviewEcon THANK YOU SO MUCH! I am taking the exam tomorrow and unfortunately, i just discovered your channel two days ago. LIFE SAVER