AP Macroeconomics Unit 4 - Part 1 Summary: In this video she covers basic concepts. She begins talking about the types of money, which are commodity, representative and fiat. She mentions the functions of money, medium of exchange, store value and unit of account. She finishes by talking about how price gives a way of determining quality.
AP Macroeconomics Unit 4 - Part 4 Summary: In this video she talks about the Fed’s tools of money policy. She compares expansionary and contractionary policies. Expansionary is easy money whereas contractionary is tight money. Expansionary decreases required reserves and discount rate, and buys bonds increasing money supply. Contractionary increases required reserves and discount rate.
AP Macroeconomics Unit 4 - Part 8 Summary: In this video she talks about how money is created. She says banks make money buy creating loans. Loans are determined by required reserves and excess reserves available. Once you have loan amount you multiply it by the money multiplier and that is how much money is created.
AP Macroeconomics Unit 4: Part 3: Summary: This particular video's main concept was about how to graph money market graphs and how the slopes relate to the law of demand. The video also demonstrates that when the price is high, the demand decreases which makes it slope downward. We learn that the supply of money is graphed vertically because it is not tied into the interest rate. If we have an incentive for more money, there will be an increase in demand, therefore a shift to the right. Overall, you are shifting the supply of money and the demand of money to the right or to the left.
AP Economics Unit 4: Part 7: Summary: This video is about Loanable funds graphs. The main idea is to tie loanable funds with the money market and demonstrate the results in AD/AS. The demand of loanable funds is downward slope because when the interest rate is lower people demand for more money. When the demand is sloping upward the demand for money decreases and people are stable. For the final result, you have to make sure to show the increase or decrease in interest rate causes the same change in your second graph.
AP Economics: Unit 4: Part 9: Summary: This video explained one of the things you have to know for succeeding in the creation of these graphs and the fundamental concepts of economics. You have to be able to show a connection between the graphs, money market, loanable funds, AD/AS and how it effects the economy as a whole. This is the whole purpose of macroeconomics. Remember! To keep your lines straight when demonstrating the graphs side by side and that your increases and decreases are shifting to the right or to the left. You need to be able to relate all three graphs accurately with one another.
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