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Tuesday, 18 February 2014

Unit 2 & 4: Macro economics - Useful Video clips to aid understanding

Below are several links to vital concepts that you need to understand:

You should watch them outside the classroom, and then in the classroom we would follow up with class exercises to check their understanding. The plan is that they will also prove useful for revision.

The clips are deliberately short and rapid-fire – around 10 mins long for each mini topic –remember, you can pause, take notes, rewind, re-watch them as many times as you wish. Then if you have any further queries, you can ask your teacher to clarify any points you didn’t understand. This will make the lesson time much more productive.

The tutorials are short and quick:


The tutorials include:

Fiscal policy intro – this covers the basics of what fiscal policy is, how it affects the economy, expansionary fiscal policy, progressive taxes etc.

Automatic stabilisers – watch this if you are unsure why we call government spending and tax revenue an automatic stabiliser

Crowding out and in – watch this if you are unsure what crowding out / in is – why it happens etc

Laffer Curve explained – watch this if you wish to understand the explanation behind why the shape of the Laffer Curve is the way it is

Exchange rate and AD – watch this to learn how an exchange rate affects AD

Expansionary monetary policy – watch this to understand an overview of the transmission mechanism of monetary policy

Evaluation fiscal policy – watch this for some key evaluation points on fiscal policy that limits its effectiveness

Fiscal drag – watch this short clip that explains the phenomenon of fiscal drag

Quantitative Easing – watch this for a very quick explanation of what QE is

Evaluation monetary policy – watch this clip to understand the key evaluation points on interest rates that limit its effectiveness

Evaluation exchange rates – watch this clip to understand the key evaluation points on depreciating a currency to promote real GDP


Note: There are similar tutorials available on elasticity here

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