In this video, we introduce the field of economics using quotes from the person that many consider to be the "father" of economics: Adam Smith. Topics include the definition of economics, microeconomics, and macroeconomics as a field and the role of assumptions in economic decisionmaking. Created by Sal Khan.

Inflation is an increase in the price level over time. In this video we explore inflation and how it is calculated using a measure called the consumer price index (CPI). Created by Sal Khan.

Interest is effectively a rent on money. In this video, we think about what an interest rate really is. Learn about the difference between simple interest and compound interest and how interest is calculated on a loan using an example of calculating the interest rate on a loan. Created by Sal Khan.

Present value is the value right now of some amount of money in the future. For example, if you are promised $110 in one year, the present value is the current value of that $110 today. Present value is one of the foundational concepts in finance, and we explore the concept and calculation of present value in this video. Created by Sal Khan.

Introduction to series analyzing income and wealth trends in the US. Created by Sal Khan.

What an economist means when they say "investment" is different than what most people mean when they use it in day-to-day conversation. In this video, take a deeper dive into the investment category of real GDP. Created by Sal Khan.

Intuition as to why high real interest rates lead to low investment and why low rates lead to high investment. Created by Sal Khan.

Analyzing planned expenditures versus actual output using the Keynesian Cross. Created by Sal Khan.

More on shifting aggregate planned expenditures. Connecting to the multiplier. Created by Sal Khan.

How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve. Created by Sal Khan.

The law of demand states that as the price of a good decreases, the quantity demanded of that good increases. In other words, the law of demand states that the demand curve, as a function of price and quantity, is always downward sloping. In this video, we explore the law of demand and its implications for graphing demand curves. Created by Sal Khan.

In this video we explore the law of supply which states that quantity supplied increases as price increases. We use a supply schedule to describe the quantities a seller is willing to sell at different prices, and then translate the supply schedule into a supply curve that illustrates the law of supply. Created by Sal Khan.

GDP is the most commonly used measure of output, but it leaves some things out. Learn about the limitations of GDP in this video.

Thinking about how real GDP can drive real interest rates. Created by Sal Khan.

How do savers and borrowers find each other? In the market for loanable funds! In this video, learn how the demand of loanable funds and the supply of loanable funds interact to determine real interest rates.

We claim that aggregate supply is not responsive to changes in the price level in the long run, leading to a vertical long-run aggregate supply (LRAS) curve, but why? In this video we explore why aggregate supply may not be influenced by prices in the long-run. Created by Sal Khan.

A demand shock has a short-run effect on an output and unemployment, but in the long run only the price level will be impacted. If there is an increase in aggregate demand, the price level will go up. Once wages have adjusted to that inflation in the long run, SRAS decreases and returns the economy to full employment output. Shocks do not cause economic growth, only changes in full employment output cause economic growth.