Channel: Jacob Clifford

Category: Education

Tags: macromacroeconomicslong-runtopic3.7aggregate

Description: Hey econ students! In this video I expain how the economy can self-adjust in the long-run. Notice that the short-run aggregate supply is shifting when the economy self-adjusts. Also notice that the reason for the shift is a change in wages and resource prices. When there is a positive output gap, ages and resources prices eventually increase and when there is a negative outpit gap wages and resource prices eventually decrease. Thanks for watching. Ultimate Review Packet: ultimatereviewpacket.com/courses/macro The answers to the practice questions at the end of the video are in the first comment below ↓