Price changes the quantity supplied, but what might cause supply to increase even if price hasn't changed? In this video, we explore the determinants of supply: those factors that cause an entire supply curve to shift. Created by Sal Khan.

How a currency crisis in Thailand led to a banking crisis in the 1990s. Created by Sal Khan.

In previous lessons we've learned how expansionary monetary policy and expansionary fiscal policy can be used to mitigate a recession, but they don't have to be used in isolation from each other. Often there is simultaneous use of fiscal and monetary policy. Learn what happens when they are used at the same time in this video.

Fiscal policy can be used to close output gaps. Fiscal policy means using either taxes or government spending to stabilize the economy. Expansionary fiscal policy can close recessionary gaps (using either decreased taxes or increased spending) and contractionary fiscal policy can close inflationary gaps (using either increased taxes or decreased spending).

Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else. The last resource, entrepreneurship, refers to the ability to put the other three resources together to create value. In this video, we define each of the four factors of production and provide examples of each.

Overview of full reserve banking in comparison to fractional reserve banking. Created by Sal Khan.

What does money actually do? Economists usually subdivide its functions into three categories: A medium of exchange, a store of value, and a unit of value. Created by Grant Sanderson.

The GDP deflator is a way of adjusting nominal output to get the real value of output. In this video, get an intuitive explanation of the GDP deflator and learn how to calculate the GDP deflator. Created by Sal Khan.

Generalizing a linear consumption function as a function of aggregate income. Created by Sal Khan.

How a change in fiscal policy shifts the IS curve. Created by Sal Khan.

Basic of hyperinflation. Weimar Germany, Hungarian Pengo and Zimbabwean Dollar. Created by Sal Khan.

In this video we explore an alternative method of calculating GDP: the income approach. The intuition behind the income approach is pretty straightforward because every time you spend money, that spending is someone else's income. Learn more about the income approach and its categories: wages, interest, rent, and profit. Created by Sal Khan.

When there are increasing opportunity costs, the shape of the production possibilities curve (PPC) is bowed out. Learn more about how the shape of the PPC, which is sometimes also called the production possibilities frontier curve (PPF), depends on opportunity cost in this video. Created by Sal Khan.

In this video, we take a slightly different approach to determining comparative advantage because we are given data in a slightly different way. Rather than knowing how much of two goods can be produced in a day, we know how much of a resources (in this case labor) is needed to produce one unit of a good.

Changes in interest rates in one country impact economic conditions in other countries. In this video, walk through a chain of events that starts with a change in interest rates in the United States that affects the relative value of the dollar, the Japanese Yen, and exports.

Uses the tools of macroeconomics to study three macroeconomic policy problems in depth. Possible topics include long-run economic growth, the macroeconomics of the transition to a modern capitalist society, federal government surpluses and deficits, Social Security, the distribution of earnings and income, and the Great Depression. Requires a 20-page paper on a subject related to one of the topics considered in the class. This subject considers three topics of macroeconomics that are alive and controversial for policy today. The topics are: economic growth - the roles of capital accumulation, increased education, and technological progress in determining economic growth; savings - the effect of government and private debt on economic growth; and exchange-rate regimes - their role in the Great Depression and today.

In this video, we think how bonds work. Topics include what it means to buy a bond, what it means to issue a bond, coupon rates, par value, and maturity. Created by Sal Khan.

Learn how interest rates, exchange rates, and international trade are intertwined in this video.