[Music] yes here we go this is it i am so excited it's time to jump into macroeconomics review this is the day before the exam this is it you've been spending all this time this whole year getting ready and we're finally there if you're like a lot of students you've been binge watching my videos so here i am live to help you out will not be a very long session there's other videos i want you to take a look at i'm just gonna give you some tips and strategies and ideas right now let me know in the chat how you guys are doing if you're feeling confident let me know if you can get a five four three two or one in the chat right now uh you know there's several people who are here it's so glad that uh you guys i'm so glad you're here first of all thank you so much so all right first things first you want to go get at the very least even if you don't get my ultimate review pack and i'm not going to spend time talking about that i need you and want you to go get this because this is where you start so the ultimate review packet it's free this this part of it is actually free uh this is a breakdown of all those concepts in this course so when you get the ultimate review packet i see a lot of fives a lot of fours jacob i love you i love you too yeah you're doing right okay so um all right so the first thing i want you to do and what we're going to do a little bit together is let's go over what the main concepts are where you need to focus and then ask yourself do you know those concepts if you don't you're going to go back to youtube watch some videos get my ultimate review pack get practice multiple choice questions and if you can take a practice test if you have the time but we're running out of time let's be honest you know one is the basic concepts it's only five to ten percent so the percentage is this is based on the college board when it comes down to what percent on the test uh covering what but the key to this is to know where to spend your time don't go back and reread your book that doesn't help you don't go back and maybe even look back your notes that's not really going to help you it's time to pinpoint your review first thing uh these little plus one i did if you saw my ultimate review packet there's the hot wings video that's in there that breaks down the test i do all the percentages how often they ask certain questions but key for now is know that you're gonna get at least one production possibilities curve question you're also going to get at least one comparative advantage question now for comparative advantage i have several videos that cover it a lot of students get confused about it but if you're like i don't remember it i'm not good at i was never good at it don't spend your time working on that because it's only maybe one or two it could be a free response which reminds me i am going to give you my free response predictions this year what i think is going to be on the test in a second but let's go over the multiple choice for now you're going to have a comparative advantage question in there it is something that you should review but again like i said if you're horrible at terms of trade not the end of the world if you don't know that one part you should know how to get compared advantage there's a video that i made for you uh it's the five tips on compare advantage watch that one if you need some help with that you're not only going to see much market supply and demand stuff for the most part these are the two areas to focus on make sure you can draw this as well both of these might be on a free response all right in unit 2 you learned about how we measure the economy you're going to get at least two questions on gdp how to measure gdp maybe what's not counted in gdp i'm just understanding the general concepts of that you're going to see at least two questions about unemployment these are the easy ones you got to get the easy ones right three types of unemployment frictional structural cyclical understand the idea of how to calculate unemployment rate all that stuff these are the easy questions you're also going to see at least one question up here about inflation the idea of maybe how to calculate cpi or a cpi question and those are the main concepts in this there's also the business cycle graph you're never going to be asked to draw that graph but it's a good graph like to understand all the concepts which reminds me if you have not watched this yet you need to go watch it don't watch it right now but this every graph you need to know video i posted about a month ago it has all the graphs that you need to know they're all sitting right there what you want to do is after you've reviewed right before you walk in the test maybe watch that video or my everything you need to know video that covers all the concepts but you want to get those concepts back in your brain the great thing about this video is it actually connects all the graphs and shows you how they're all interconnected so it kind of it's after you've already practiced them you understand you feel comfortable now i can show you all the connections between all that stuff but the business cycle graph is not a graph you'll draw but it helps you understand all the other concepts in unit 3 that's where this class gets hard notice in unit 1 5 to 10 unit two we said twelve to seventeen percent unit three now seventeen to twenty seven percent unit three four and five is where the bulk of this class is you're gonna get at least four questions on aggregate demand and aggregate supply basic shifters easy stuff two if the government increases government spending what'll happen to price level and gdp right so aggregate demand shifts to the right price level goes up gdp goes up easy questions you'll see like that another one's a little more complicated but you're gonna have at least four of those you'll have two that have the multiplier as well so feel comfortable using multiplier effect calculating with they give you the marginal function to consume or save calculate multiplier and then trying to close gaps that concept you're going to see the other section that is huge in this unit is fiscal policy make sure you understand fiscal policy government spending taxation and how to close recessionary or inflationary gaps those are the big ideas here you'll also see a self-adjustment hint i think this year is going to have a self-adjustment in the free responses as well i'll talk more about that in a second so the long story here is you got to know i'm what i'm trying to do is just get some concepts back in your brain if you don't already have this document in pdf form go get it it's in the ultimate review packet when you click on this it'll take you to my video on youtube that covers that exact concept so if when i say long-run self-adjustment and you're like i don't know what that is i have no clue go click on that video it takes my video where i cover that concept all right in unit 4 we're talking about the whole idea of financial sector 18 to 23 of the test on this one notice all the beginning stuff it's important it's cool but the real big stuff the stuff that you definitely need to know starts with the money multiplier the idea that banks create money the supply and demand for money graph the money market graph and then of course monetary policy the big one here is open market operations the test loves open market operations and understand the idea that central bank can buy or sell bonds so open market operation is something you're going to see if i say open market operations or i don't know what that is you got to go relearn and get that concept back in your brain now in unit 5 it says 20 to 30 percent now some students might go oh 30 that's more than any other units i should spend all my time in unit five now it has a lot of recap of things you've already learned so unit five talks a little bit more about okay we know about fiscal monetary policy what happens when we combine them so that's the first part fiscal monotype actions together it's gonna have the phillips curves you'll see two questions on that they'll either give it to you or ask questions about it which we'll draw in a second there's going to be a question about crowding out and the whole idea that there can be economic growth the production possibilities curve can shift outward or the long-run aggregate supply curve can shift outward again if you don't know what i'm talking about you're like what is he saying that's not good it is not good because i'm not i'm not giving like crazy concepts you should hear me and be like yeah i got it let me know right now in the comments if you're feeling like you're getting this so far now in the last unit this is the unit where a lot of teachers rush run out of time uh but the good news it's super short but it's also super important 10 to 13 of the test you're gonna get one question on balance of payments you know what's counted in the different you know accounts current account or the capital financial account again not the end of the world if you don't remember this it might be on a free response it has in the past but it won't be the entire free response the thing you've got to know here is the idea of foreign exchange you'll get at least three multiple choice questions talk about appreciation and depreciation of currency and its effect on the overall economy the key here is to remember this relationship that when a currency appreciates right that's going to cause net exports to fall right students get confused on this i think appreciation is a good thing and economics is really not good things and bad things they're just things right some things are good and some things are not so good it depends on who you are so if your currency appreciates then people other countries people in other countries are going to buy less of your goods because your currency is now more expensive for them so if your currency depreciates then your net exports and your exports would increase now if you don't remember this i covered this in my last review session this class has so many key relationships it's inside the ultimate review packet on the ultimate cheat sheet where i have all those key relationships remember okay this causes this this causes this if you keep in mind those key relationships you're going to be fine there are six key graphs we'll draw here in a few moments when i put these up here production possibilities curve mentally tell yourself okay check i got it i can draw it i understand how to shift it i understand movements along the curve i understand the whole concept of like you know more capital means more growth you understand aggregate demand and supply feel good with the money market graph and monetary policy loanable funds market with the real interest rate and its overall effect on the economy the phillips curve tells you what the economy is and foreign exchange showing you changes in the value of currency other countries demanding your currency or you supplying more of your currency those are the key graphs you will be asked about at least at least three of them at the very minimum you'll probably be asked four or even all you know five of them in terms of importance i don't want to say you know which one's you know the least important i can tell you the one that's most important the one you're most likely to see is aggregate demand and supply i guarantee you'll be asked to draw somewhere on that free response why because every year you're asked to drive remember there's only three places the economy can be negative output gap full employment or positive output gap so there they are right here in the bottom you can see these are the key skills so can you do these things again i'm not going to bottle reading them to you i kind of covered them over the last few moments here but going through this like check yes yes yes i don't quite remember how to calculate and use the money multiplier i got to go watch a video on that i got to go practice and do the practice sheet and ultimate review packet or do some multiple choice questions or something along those lines the point is that's the class you are ready you don't think you're ready but you've been studying you've been putting the time and effort in this class you're you're ready you're ready and if you're not ready you still have a few more hours to get yourself ready right now what i want to do is i want to go talk about the graphs of this class and again i know i'm hauling but really i'm just trying to get things kind of back in your head just a little bit let's go talk about some of the key graphs specifically the six graphs that are right here all right so those are the six graphs again there's a video i explained them all in so much detail more detail than you ever possibly want but really this is what you're going to see on a free response the other concepts you might see on a free response outside of graphs so things that you might see you might see a question and a part of a question that talks about the gdp deflator how to calculate the gdp deflator right that concept you might see cpi they can give you a chart that has different prices and different baskets they don't ask that very often usually they ask you about graphs on three responses you might see you know a graph but they they have you closing a recessionary gap or a negative output gap so using the multiplier effect that's something else big concept you might see you might see comparative energy you know what it might be your first response might just be a full compare advantage question two countries two products who has an absolute advantage who has a compare advantage terms of trade the whole shebang um so other things outside of graphs you might see also would be the whole idea of bank balance sheets assets and liabilities and then you know what happens with you know the bank does this or that somebody withdraws money or someone you know deposits money all that kind of stuff and money creation other concepts you might see most of them are inside these graphs so that's what they do is they'll ask a graph and then ask you questions kind of outside the graph with other concepts that are related to the graph but you need to know those six graphs the question now becomes uh let's do this 10 is total complete comfortable with this this graph every single graph you totally feel comfortable about it okay and uh one is like i feel so uncomfortable i'm gonna cry right now please tell me where you are with your comfort level i see you guys are asking some questions in the chat i'm not that i'll get to there i love you so much i love you so much so let me know how you feel i want to see some of your numbers i like i like quantifying things um all right we got to study a lot all right so let me know your comfortableness with this i'm waiting for some of these numbers 10 is totally feeling comfortable all right here they come here they come here they come all right look at this question what is ag you know what actors man you're trying to play with us i know what you're trying to do right now okay for the most part it says people feel like they're comfortable right that's what it's nice to see yeah i apologize i'm just looking through the comments right now you're watching me look through comments which is probably not very fun for you um and i love you too all right so it looks like for the most part people feel comfortable with these graphs i'm really really quickly i'm gonna super fast i don't want to you know spend too much time on this i'm going to cover some key concepts inside the graph that you're most likely to see after that i'm going to show you what i think the few responses are going to be this year okay so here we go first the production possibilities curve you know we've got capital goods consumer goods it doesn't matter which side you put it on you got an outward bowed out curve looks like this the key concept is understand that unemployment is a point inside the curve this is the idea of a recession this is the idea of full employment you feel comfortable with that you also should know if i pointed to this ap test doesn't ask us very oft we have two types of unemployment frictional and structural unemployment even when the economy is doing great we're always going to have a certain amount of unemployment here we're going to have frictional structural and cyclical unemployment so this means we also have people between jobs because the economy is doing crud and it's not doing well so this is the idea of like a recession a point up here is impossible given our current resources so you might see that they might ask you to draw a point in the curve showing a recession they've done that in the past several times actually or they might actually shift this curve if there was growth basically dude if that's what's on your test stoked that's easy you know production possibly is curve when it comes to aggregate demand supply you know price level gdp you can draw these with me if you want downward sloping demand upper sloping short run aggregate supply this vertical line can be in three places down the middle to the left to the right one way to remember that when i to the right is a recession so i just drew a negative output gap why is it negative because this is y1 where we are that's why f where we want to be at full employment so if this point was right here and let's put the price level right there let's just call that a so we can see this is also the same idea as a recession recession okay cool you got that so they might ask you to draw this in one of the three ways full employment negative output gap positive output gap make sure you can draw that one you're also going to see the phillips curve which does the same darn thing over here it's inflation not interest rate down here is unemployment all right you've got a downward sloping short run phillips curve and a vertical long run phillips curve this vertical curve this unemployment amount is when we have frictional and structural okay frictional structural means something this is called the natural rate of unemployment it's totally natural totally normal to have frictional and structural unemployment everyone's going to have it all the time it's not a problem this is the same idea natural rate of unemployment sweet now if we wanted point a on this last graph notice these all tell you where the economy is point a point a over here is point a we have high unemployment inflation is not really a problem but we have this idea of a negative output gap they've asked and we'll ask that graph a lot on the ap test they'll give you that in the multiple choice they'll give you it on the free response feel comfortable drawing all three of those and understanding those concepts now that makes sense let's go to draw this other graph because it shows you not the economy where it is it's a policy graph this is the nominal interest rate this is the quantity of money i'm not going to put a dollar sign i reserve dollar signs for foreign exchange this right here is the money supply you can also put sm that's fine downward or vertical money demand sorry oh my gosh i can't believe i just did that that's money demand that was weird you guys are all freaking out money supply is vertical i'm going too quick money demand is downward sloping and notice i can't put point a on here i can't tell you where a recession is because that's not what this graph does it's just telling us where the interest rate is the interest rate is set because that's where the supply and demand for money are now what can we do here's what we're gonna do right now there are three options to fix this economy on the top one two and three you should be able to know what those three options are and what happens on the graph that's what you're going to see on the free responses the first thing we can do is wait it out do nothing no policy that's what they'd say on the response they'd say draw an economy showing a negative gap uh explain what would happen if the government takes no policy action so you should be able to explain that i'll explain that in a second next one they can use fiscal policy fiscal policy would also change this graph most of the time we talk about you know shifting aggregate demand not necessarily the idea of supply side economics although they could ask about that and the last one is monetary policy so when it comes to this class you've got a graph they're going to have you to draw they're usually going to have you try to fix the problem and explain how do we fix that problem notice you wouldn't use this graph for any of these except for monetary policy right that's this is the idea of monetary policy so let's jump into this real quick and talk about each one of these if you and hopefully you know exactly what i'm talking about if we were to wait this out eventually over time i can say this eventually wages will fall right why well if we have 20 unemployment eventually people accept a job at a lower wage prices will fall eventually over time and that will cause the short-run aggregate supply to shift to the right putting us back at full employment right that's the same idea as the short run phillips curve shifting to the left putting us in a new point like let's say point b right here will be the same as point b right here remember any time this curve shifts that way the short run phillips curve shifts the other direction so these shift like this and it makes sense too it's not just like random it makes sense here price level goes down and output goes up so that's the same idea as inflation going down and unemployment going down right if we're producing can produce more stuff we're gonna have less unemployment than before okay that's waiting it out that's one policy one thing if we use fiscal policy that's not waiting for supply to change that's shifting demand that would be increasing government spending or taxes you know you can't read this up here but that's government and taxes the main ones you're going to see for fiscal policy that's a good idea of increasing aggregate demand right the economy's not doing well government starts to spend aggregate demand could shift over here uh so that would be point b here that'll be the idea of putting point b on this side i've covered all these concepts in my other videos so if you think i'm going quick that's okay don't worry about it let's go use monetary policy and let's use this graph to close this gap so what we're going to do to the money supply while you increase the money supply increasing the money supply let's call that the quantity increased my supply would lower the interest rate there is a key relationship interest rates go down right lower interest rate means more investment more consumer spending that would shift the aggregate demand and close this gap now aggregate demand would shift to the right that's the same idea as let's say point b that's the same idea on this graph as point b the economy is fixed yay it's not that easy in real life but they for economics class yeah okay we'll keep it simple and say that's what happens so consumer spending would also increase right this is the idea of monetary policy this is a huge part part of this class just understanding that general concept and understanding anytime the aggregate demand shifts that's moving along the phillips curve all right you've got that concept the concept here though how'd that money supply increase like how did that happen well there's three things right and you know they are that's lowering the reserve requirement two would be lowering the discount rate or three the big one is open market operations and the central bank buying bonds okay i know i'm going quick here but this is the one you're going to be seeing on the test the most it's the one the central bank does the most so it's most likely going to be on the test but this is it i just covered four of the main key graphs we've got two more to cover loanable funds this nominal interest rate this is the real interest rate when you're making a loan you don't want to think about inflation you want to factor out inflation this is the quantity of loans it's just good old-fashioned demand downward sloping and supply and that gives you the real interest rate and the quantity all right it seems like well what's the point of this graph it it doesn't tell you where the economy is it just shows you what happens here's the trick i want you to remember supply is savers anything that affects savers right or lenders that's going to affect the supply and this bottom demand curve is by borrowers anything affects borrowers and why does it matter well if there's an increase in borrowing let's say the government does this borrowing right to use this fiscal policy fiscal policy government increases that government spending that would increase the demand right for loanable funds now the government's doing all this borrowing right and that would increase the interest rate increasing the interest rate is this idea of what i just talked about earlier right here the idea of what's called crowding out what i just showed you loanable funds is often used with this idea of crowding out they asked that question a lot on the ap test in the past and they'll continue to do that all right last thing foreign exchange this is the exchange rate this is the quantity this is the demand this is the supply and it sets the exchange rate for any given currency there it is you know this graph nothing new here i know you know what i'm doing here i'm going to go back to my predictions in a second here's a trick for this one any demand for your currency is done by foreigners i'm running out of room that's foreigners this is people who are domestic now it's really not that simple in real life but if you see a free response and that's you know the decision that's being taken place is going to affect you know foreigners willingness to buy your goods and services that's going to affect the demand for your currency because the demand for your currency is set by those foreigners you however need to supply your currency one of the things i like to show students and i think this is a good visual to help them out with foreign exchange think of the foreign exchange market as all the people who are lined up like my ugly drawing at a table here they're all sitting and there's this big pile of money here and there's a bunch of different types of currencies in this big thing right inside here there's yen and there's dollars and there's pesos there's there's everything right so this is all different types of money that's inside this thing that's the foreign exchange market these different people they're both walking up right asking for things but they're also putting things in to get it that makes sense so if this guy's an american usa this person is american they are demanding yen right they're demanding in but they are supplying dollars right so it's going to affect you know the demand for the yen market but it's going to affect also the supply in the dollar market so you just got to keep straight when they ask you questions are we talking about dollars or yen and who's doing you know the who's doing the wanting and who's doing the supplying if that makes any sense but that's the concept of foreign exchange the key with this one is if people want more of your products they're going to want more of your currency that would cause your currency to appreciate and then that has all sorts of effects on the economy another concept you need to know is the effect that interest rates have on net exports you see that concept in unit 6 as well now i rushed through that and if you haven't been studying you're like what is going on i can barely breathe this is impossible it's not impossible and the good news is not that many grafts especially compared to microeconomics it's not that much stuff that uh that you need to know in a second i'm gonna ask for you guys uh get a few of your comments uh which is great in a second um i'm looking at a few of your comments right now so yeah so um before i do that let me give you my predictions this is the moment you've been waiting for is my predictions now the first thing i want to tell you yes don't worry don't worry i'm not gonna forget that free response um when i say predictions i am saying exactly that i am making a prediction i have no clue what's on the test i don't every year someone's like you said it was gonna be this and it's it's not and that happens i'm gonna also tweet this out in a few minutes too so if you forget what i just said or you're not quite sure what i'm saying um i'll tweet it out as well and i love uh if you're a teacher right now respond to that twitter and what just happened everything turned off um respond to that twitter and let me know um let me know you know retweet that to your students and let me know what your predictions are because all these teachers we're just making predictions we don't really know what's actually on the test but if you haven't already seen it the reason why i have an idea what's on the test is because of this right this is a breakdown that's my girl this is a breakdown of what they've asked in the past now every year recently why is it stopping 2019 you don't want to go do the 2020 or 2021 tests those tests were different because the class was taken you know it was all online it just it just didn't work right so don't don't freak out about that but i you know don't look at those fair responses they they didn't have graphs and it just yeah i ignored those ones they were the coveted years so this is what you're most likely to see right so it just becomes a guessing game but you can see you're always going to see aggregate demand and supply you're going to see some foreign exchange you're going to see these in different forms but some years you might not see it some years you do and then how they organize it might be a little different as well so what are my predictions what does mr clifford think is going to be on this test here they are you guys ready are you excited are you ready whoo now good news is this before i start the ap test usually depending on the size of your school has two different versions right so this they started doing in this uh 2017 or whatever so you have you know two different versions so when i make this guess it might be right for some of you and horribly wrong for other people but here's what i think is going to be on this test for the first fear response first let me back up you should know this there's three different responses one long right it takes a little more time to do too short for responses and it's all whole numbers easy to calculate no calculators required and so here's what i think i think the first one is going to be aggregate demand and aggregate supply i don't think there's any surprise there they're going to have you draw the graph including the long-run aggregate supply show you where the economy is and they're going to have specifically a positive output gap so i think it's going to have a positive output gap showing the economy is overheating with a lot of inflation why because back in 2008 2009 2010 they had a lot of questions on ap tests about recessions that's when we had like a recession a crappy economy so i think because we have a little more inflation right now i bet you they're going to ask you questions about this idea maybe even stagflation right that concept so i think that's gonna be there so i think it's gonna be that i think they're gonna go from there and say what happens if there's no policy so this is more of a described question as opposed to draw on the graph so this is the idea of a self-adjustment and understanding that in the long run wages will increase and the long run or sorry the short-run aggregate supply will decrease causing wages to go up and the economy to return back to where it was then i think they're going to jump into monetary policy why because this is again monetary policy this is where i think they're going to do because this is what's happening the economy right now they're going to have you draw the money market graph the money market graph is the one we did earlier supply and demand for money you know what i'm talking about right there money market graph right there that's the graph they're going to have you draw i think and i think they're gonna do that and say okay what's gonna happen to the interest rate maybe ask you an interest rate question right and they might ask you more specifically what type of open market operation would you know you know should the central bank use to close this positive output gap and you understand the idea that we'd sell bonds right the central bank would sell bonds that would decrease the money supply that's what i think this question is going to have then i don't know how they're going to do it but my guess is they're going to catapult that into some question about foreign exchange how well there's all sorts of things they can say they can say okay the interest rate goes up right in in this country let's assume the real interest rate goes goes up how does that affect the foreign exchange market of that country or a different country so i think it's going to have foreign exchange specifically how interest rates cause some sort of change in inflow or outflow of money coming into your country okay so interest rates effect on people you know deciding to put money in or money out this is one of those things that you need to pay attention to really quick um please remember if nothing else remember back in the day this is a concept i want to show you but in unit two unit two we found out when interest rates go up that causes investment to go down key relationship oh relationship oh when interest rates go down investment goes up so we have a tendency in this class to focus on interest rates as you know a good thing lower interest rates are a good thing lower interest rates more investment more people buying machines tools and factories and that's a good thing remember investment is borrowing not retirement accounts and that kind of stuff so this is what we learned in unit 2. but in unit 6 everything kind of switches up in unit 6 it's almost the opposite you have to think of it now instead of it's going up and we're going to borrow less interest rates going up is a good thing because that's going to cause an inflow of financial capital into your country so people are going to put more money into your country because they want to get the higher rate of return right so if the interest rate's high in the united states people in china want to buy american bonds to get the higher rate of return the inflow of money comes in and if interest rates go down that's going to cause inflow to go down or just more outflow right so there's more outflow people money is going to leave so if interest rates are low in the united states compared to another country americans will go buy foreign bonds foreign assets all right so again it's it switches on you interest rates low is a good thing interest rates low is a bad thing but remember it's not about good and bad but that's what i think this concept is you're gonna see in this first free response ladies and gentlemen that's my first free response suggestion i think it's gonna be on that if it's not whatever it could be the phillips curve it could be a positive output gap with a phillips curve which be just the same exact question except a different graph from the beginning that's what i think is first all right in number two you ready for this i do not think don't yell at me don't yell at me if that's wrong if i'm wrong i don't think it's gonna be comparative advantage this year i just don't think so uh it could be but i don't think so i also don't think this year it's gonna be a bank balance sheet question i think this year instead they're going to ask a loanable funds question and it's going to look very similar to the 2018 frq number two if you just go search on on google right now 2018 frq macro uh ap macro free response you can see the question and the answer i think you're gonna have ford exchange you're gonna have the graph so that'll be a couple points is just draw the graph then they're going to have something either about borrowing or savings the one from 2018 if i remember i had a change in savings this one might have a change in borrowing and its effect on the real interest rate real interest rate and maybe the idea of crowding out now it seems like an easy question if that's all it is but of course they can catapult that into other ideas and other concepts that students learn they could now talk about foreign exchange for this one if they wanted to but i think it is going to be a loanable fund separate individual question if you want to see what i'm talking about i'm talking about 2008 for response for the third one i think this year it's going to be the phillips curve and i think the reason why because again there's some cool things and not cool there's some weird things happening united states with inflation and the phillips curve helps explain some of that the example i'd say is the 2013 frq number three um for that one where they'd have you draw it so they start off with draw the graph they might give you the graph they've done that before and they you know they'd ask you okay using numbers from the graph explain a concept i think they might have the graph they might have um either a policy or a self-adjustment question right in there that feels a little bit more like i talked about up here with uh for response number one but i think it's going to be a phillips curve sort of question um and then something about this idea um about uh you know how inflation maybe maybe this idea that the short-run aggregate supply curve how it shifts and how that looks like a shift also in the short run phillips curve shift right something that has to do with that concept this is my guess now by the way by the way um when i say this is my guess it really is just a random guess you're going to see some of these things maybe not in this order but that's what i think this is going to look like again you've got two free responses to go take a look at to see what i'm talking about this is a classic aggregate demand and supply sort of question you'd see on the top the things that i am not saying but it totally could be comparative advantage that's one thing it could be make sure you know it it could be bank balance sheets it hasn't asked that very often and that's something again if you go in on my website acdcecon.com you can see other things they ask a lot if you can see just looking at this you can tell it's most of the things i just talked about right there they all are they're all right in front of you the one that's on there that you don't see look at the bottom balance of payments the very last thing in the very balance of of payments um that's another concept that you may you may see on there the idea uh you know the current account and the capital and financial account i'm not quite sure so that was my prediction we'll see what ends up happening hopefully you feel super comfortable with it um i don't know if you are but there you go um i saw a couple people had some questions um i did go over the phillips curve i also have a video that explains the phillips curve as well and that's the thing and i thank you sarah for bringing this up if you're like okay i don't remember the phillips curve very well obviously i just went over super fast but i have a video that covers it right so if you have this from the ultimate review packet it's free you go click on right there phillips curve boom that'll take you to the video that tells you exactly uh what it is right so phillips curve you click on there that'll give you the video there's other resources the college board makes great resources as well but that's what you want to do you want to start pinpointing what you know and what you don't know and say okay i don't know phillips curve very well i feel really great about loanable funds i need to watch that video i'll go watch the phillips square video so that's what you're gonna actually want to do for sure um you're also if you want you can go back and watch the review session that i made for units one through three it's on my youtube channel right now and the ultimate review packet has units four five and six as well exp and other exclusive videos that are inside there um somebody asked in the questions you know you know how great how good have my um uh my my predictions been in the past the answer is not not not good they every year i'm off right i don't know i'm just i'm just guessing it's fun to find out and hopefully you know when you get out of there hopefully it is exactly right um yeah you guys are asking you know good questions um some people are asking about specific stuff but i don't really have the time to go over but that's okay that's okay um yeah thank you for leaving all these so kelly wants me to adopt her that's that's funny okay um right now i think what we should do is this um mr c my ap macro teacher screen saver is a picture of you and him that's cool hey benjamin that's awesome i'm glad in fact right now it's a good time to give a shout out to your teachers if you do that i'll put them up here um so i like this right i'm ready that makes me feel a little bit like uh spongebob i'm ready i'm ready i'm ready right i am ready i'm excited that's for sure uh you know one of the things i want to tell you is you know i'm really thankful that you guys watch my videos i'm not sure if i tell you that very often um i've got so many resources for you really there's no reason to not do well because there's so many amazing resources so many videos the college board makes i've made in the ultimate review package i've got practice sheets i've got free responses where i go over all the answers i've got four full practice exams you really do want to do some multiple uh multiple choice questions i think one of the things students don't do enough because they're running out of time is they're not doing like oh i'm not they're just not doing the ultimate the um the the multiple choice questions because they're thinking i want to cover the concepts multiple choice is probably one of the single most valuable ways to actually learn because every multiple choice question you do you're learning from you go over the answer and go oh that's why i got it wrong so don't discount that in fact i think that if you're at the point where you've reviewed and nothing was kelly that was saying like oh what's the phillips script again you know it's probably better at this point if you've seen the phillips curve to do multiple choice questions on the phillips curve than to hear a lesson on me explaining the phillips curve again because knowing it well enough from a video of me explaining it is probably not as effective as verifying if you understand it well enough for the ap test and that's that's one of the things you definitely want to be able to do um so don't don't hold back don't hold back when it comes to um taking those multiple choice questions like i said ultimate review packet has has four full tests the first two i explained all the concepts that videos explain all the concepts but your teacher probably gave you a practice test that you know you have to sit down and try try those as well because i think that's going to help you like significantly um okay you guys are being silly which i appreciate um you know i want you to know that you know when i wake up in the morning i'm gonna be thinking of you guys like all your effort your time your energy i'm super excited for you um this is gonna be designed to be a short session i don't want to i see some of the questions but they're kind of all over the place and i have a feeling if we spent time doing this you know it would probably not be the best use of your time because i have specific videos and specific questions that cover those things bank balance sheet is one of those things you definitely need to know there's a exclusive video in the ultimate review packet i have videos on youtube there's other videos on youtube as well uh it's one of those things i told my students and there's a few things you can't learn without practicing so bank balance sheets there's two things you've got to practice to learn bank balance sheets and compare advantage no video will help you enough just to like get the answers because the questions are so not complicated but the details what they're asking about oh oh that little detail is what i'm messing up on it's not the concept understand that banks create money is is not the hard concept it's knowing okay if someone deposits money what's the excess reserves what's the increase in excess reserves you know what's the change in excess reserves what's the change in total excess reserves those are all different questions and different ideas so those are all things you got to keep in mind and you have to learn kind of by practicing throw a few shout outs as you guys have your teachers up here which i appreciate and i appreciate those teachers thank you so much by the way for all you teachers out there make sure um i do a workshop if you if you haven't signed up for my workshops it'll be great to meet you come out to san diego and i get to meet you i also have online workshops as well and the other thing i will say uh is uh you know if you haven't already seen the other ultimate review packets they're amazing ones there's ones for calc gov test is already over so don't worry about that but uh there's there's other ultimate review packet there's chemistry ultimate review packet those are already out there so you can go get those uh if you need more help with those other topics i appreciate all these nice things you guys are saying it's awesome all right there you go there you go giving some shout outs mr clifford can i have and i love you for good luck the answer is yes and i will tell you all not that i love you like like that kind of love but i really really appreciate you i love my family my wife and my dog but you know i really appreciate you and i know that i've um i've hopefully had a chance to help you guys and it's weird and amazing to me if you ever get a chance to meet me in in real life you see me at disneyland walk up say hi get a big hug um and i want you to know it's it's pleasure being kind of your quasi teacher you got your main teacher who is awesome and hopefully helping you and you're having a great experience but i've been able to help you on the side and it's been a blast being your quasi teacher um right now i'm taking off again i'm gonna post these predictions on twitter so go follow me on twitter if you need to make sure to subscribe as well to youtube uh it helps youtube you know know that i'm making good videos even if you don't watch my econ videos again that's the goal right you want to pass this test so you don't take college econ unless you made your nikon but go ahead and subscribe and make sure to like the video again thank you so much this is the last time i tell you this unless of course you're taking micro i'm doing a micro review session tomorrow this is the last time you're going to hear it from me heading into the test you know i'm about to say thanks for watching until next time [Music] foreign