Macroeconomics- Everything You Need to Know

hey how you doing econ students this is Jacob Clifford welcome to ACDC econ so in this quick video I'm going to cover everything you need for an introductory macroeconomics class or an AP macroeconomics class I'm going to go super fast but keep in mind this is not designed to retach you all the concepts it's designed to help you get ready right before you walk into the big AP test your big final also it's a great way to review what you know and don't know by watching the entire class over again you can spot the things

that you have to go back and study and if you've been watching my videos you know I sell something called the ultimate review pack it has a bunch of practice questions and access to hidden videos that help you learn economics these summary videos they cover everything in Greater detail than this video I'm doing right now now I was going to make this video available only to people who buy the packet but then I thought you know I can trust people man if you like my videos if these videos are helping you learn economics please go

get the packet I'm going to make this video available to everyone but if you like my stuff please support my channel and help me continue to make great Ecom videos okay let's start it up now whether or not you're enrolled in a microeconomics class or a macroeconomics class it all starts the same for a basic introductory econ course it starts with the ideaa of scarcity scarcity idea is we have unlimited wants and limited resources also you're going to learn the idea of opportunity costs that's the idea that you everything has a cost right it doesn't

matter what you're producing you got to give up something to produce it or any decision you make has a cost now those Concepts come together with the production possibili is curve it's the first graph you learn in economics it shows the different combinations of producing two different Goods using all of your resources so any point on the curve is efficient like you're using all of your resources to the fullest any point inside the curve is inefficient any point out here outside the curve is impossible given your current resources and there's two different shapes you have

to remember if it's a straight line production possibilities curve that means there's constant opportunity cost which means the resources to produce to different products are very similar so similar resources if it's a straight line if it's a boat outline concave to the origin that means that resources are not very similar so when you produce more of one you have to get more and more of the other one that's called The Law of increasing opportunity cost now this curve can shift if you have more resources like land labor and capital or less resources or better technology

that can shift the curve another thing that shifts the curve is trade if another country trades with another country that can shift out their production possibly curve but it shows how much they can consume not actually produce so it doesn't actually change how much you can make but you can uh consume beyond your production possibili curve and that brings us to the hardest part of this unit the idea of comparative advantage comparative advantage is the idea that countries should specialize in the product where they have a lower opportunity cost so if you're producing one thing

and I'm producing something else if I can produce a lower opportunity cost than you I should produce this you should produce other thing and then we should trade now there's two different things you got to remember absolute advantage and comparative advantage absolute Advantage is a joke it's easy you just figure out who produces more that means they have an absolute Advantage comparative advantage requires you to do some calculations or the quick and dirty if you saw my unit summary video and it tells you who should specialize in what now another thing you have to learn

is the idea of terms of trade which means how many units of one product should they trade for the other product that would benefit both countries that's the idea of terms of trade in this unit you also get a basic overview of different economic systems like the free market system capitalism and the idea of a command economy and a mixed economy we're going to focus on capitalism in this class and so you learn the circular flow model the circular flow model shows you that there's businesses and individuals and the government and how they interact with

each other just remember businesses both sell and buy two different things they sell products and they buy resources so there's a product market and there's a resource market and individuals you and me we buy products and we sell our resources and the government does some stuff as well another thing you're going to learn here is some vocab like transfer payments this is when the government pays individuals like welfare but it's not to buy anything it's just to provide some public service and you also learn the idea of subsidies when the government provides uh businesses money

to produce more and also you're going to talk about the idea of factor payments so individuals sell the resources and businesses pay the factor payments to those individuals now you one sets a foundation for everything you're going to be doing later on you start with demand and Supply remember demand is a downward sloping curve that shows you the law of demand when price goes up people buy less of stuff right when price goes down people buy more that's the idea of price and quantity demanded there's also a law of supply when the price goes up

people produce more price goes down people produce less right price goes up quantity Supply goes up price goes down quantity Supply goes down now together they form equilibrium please note if price goes up there is no shift price does not shift the curve it just moves along the curve creates either shortage when the price is low or a surplus when the price is higher you should also understand when there's actual individual shifts so there's only four things going to happen demand can go up demand can go down Supply can go up or Supply can go

down and you just watch the graph draw the graph tells you exactly what happens to price and quantity every single time now in a microeconomics class you go to a lot more details about the supply and demand graph and ceilings and floors and all sorts of crazy other stuff but you don't need to understand those concepts for most macroeconomics classes just understand where equilibrium comes from what happens when demand shifts right or left when suppli shifts left or right and understand the idea of shortage and surplus that's usually enough and you add on that concept

when you learn about aggate demand and agate Supply later on in unit three overall I give unit one five out of 10 difficulty not because of super hard because there's a lot of stuff you got to cover production possibilities curves supply and demand understand all these different graphs and it's going to set the foundation for everything you're going to do in the rest of the course here we go now we're going to jump into full macroeconomics we talk about the macro measures in unit two we're talking about the three goals of every economy doesn't matter

what kind of economy is they have three goals they want to grow over time they want to produce more stuff they want to keep unemployment down like limit unemployment and they want to limit inflation or at least keep prices stable that's what you do in this unit you cover each one of these Concepts how do you measure these different things and what are the issues with those measurements and then we move on and apply that stuff in later units so it starts off with the idea of growth growth is the idea the econom is expanding

over time the most important concept probably in the entire course is GDP gross domestic product it's the dollar value of all final goods produced in a year in a country's border so anything you produce in your own country now you should also understand the idea of GDP per capita which is the GDP divided by population and get good at doing percent change so if I say the GDP in one year is this amount and the GDP in another year is different amount you should be able to calculate the percent change in the GDP now when

it comes to GDP it's important to know what's not included in GDP and the first one is intermediate Goods these are Goods that go into the production of a final good so we only count the final good not the things that went into producing it so we count the final laptop not the computer chip that the laptop produced producer bought from another company so intermediate Goods don't count also we don't count nonproduction transactions because there situations where nothing new is produced so stocks and bonds they don't count in GDP because we have to count things

that are goods and services provided in that year nothing old nothing counted in previous years that doesn't count towards GDP and the last one is non-market transactions so illegal Goods or illegal labor those don't count in GDP either and there's two ways to calculate GDP even though the most important one for our purposes is usually the expenditures approach but there's also the income approach the expenditure approach adds up all the spending on all goods and services in the economy and that tells you how much we produce in a given year the income approach adds up

all the income earn from producing those final goods and services so really it should just be the same number two different ways of calculating it but it does give us the most important equations remember GDP equals c plus I plus G Plus xn it's a super important concept remember business spending is investment it's not stocks and bonds stocks and bond s don't count towards GDP government spending government can buy stuff and other countries can buy stuff now for net exports remember exports minus Imports is the net exports in three United States it's actually a negative

number and the income approach also has its own equation it's made up of rent wages interest and profit so if you add up all those you add up what's called uh the factor payments then that should add up to the GDP of the things we produce in a year another concept you're going to see is the idea of nominal and real GDP remember nominal GDP is not ajust for inflation so when we talk about the economy we're usually analyzing real GDP because that's adjusting for inflation and showing us what we're actually producing and a great

way to show that is the business cycle the business cycle shows you there's four different phases in the business cycle when there's a peak and then when the econom is up there eventually over time the economy moves towards a recession and it falls down to a trough and then it goes into expansion goes right back up the economy goes up and down over time and that tells you there's only three places the economy can be at any given period of time we can be at full employment this is the IDE that the economy is doing

great GP is up real GP is moving nice and steady we can have a recession right this is or recessionary Gap where the econom is not doing well we have very high unemployment and we have something called an inflationary Gap when the econom is kind of overheating and we're having more and more inflation you're going to see those Concepts later on as well and that leads to the second goal of every economy to limit unemployment now unemployment is the idea of people who are looking for work that can't find it who are in the labor

force remember it's not by population it's the number of people who are not working who are actively looking divided by the labor force times 100 gives you percentage that percentage number of people who are unemployed in the economy there's also the labor force participation rate and understand the idea of labor force is the group of people who can and are able and are willing to work above 16 not institutionalized not in jail and at this point you're going to learn the three types of unemployment there's frictional when people are between jobs and they're looking for

jobs they're structural when people are replaced by robots so they don't have the skills that people actually want or that employers want so their skills are Obsolete and their cyclical unemployment when there's a recession the economy's gone down and people have lost their job because no one's buying products so people don't need resources they don't need the workers so in any time in the economy whether it's good or bad there's always going to be two types of unemployment frictional and structural and that's the goal remember the goal is not to have 0% unemployment the goal

is to have just frictional and structural unemployment so United States that's about you know 5% unemployment that's called the natural rate of unemployment it's perfectly great to have only frictional and structural unemployment the economy is doing po we have a recessionary gap when we also have cyclical unemployment and of course the unemployment rate also has some criticisms keep in mind that sometimes people aren't counted when they should be counted it's called discouraged workers these are people who stop looking for work and they're not counted in the labor force they're not considered unemployed but in real

life like they are they they wish they had job but they sto looking when you stop looking you're not part of Labor Force so that one makes the unemployment rate look lower than it actually should be and there's also the idea of part-time workers part-time workers are counted as fully employed and so somebody might be all upset and sad that they're not working full-time but according to the numbers they're still considered fully employed and again the unemployment rate number isn't perfect doesn't show actually what's happening in all situations in the economy and there's one more

goal of every economy to keep prices stable to limit crazy inflation remember inflation is the idea that money loses its purchasing power right so it requires more money to buy the same number of goods as before when there's more inflation we have inflation there's also deflation when prices are falling and disinflation when the economy or sorry when the inflation rates actually falling so inflation rat's been going up for a long time and the inflation ratees going up by less and less that's called disinflation you should understand the idea of nominal and real wages if you

know let's say your boss gave you a 5% raise you're like yeah great my nominal wage increased my nominal wage went up by 5% but if you have 10% inflation then in real life your real wage fell by 5% so you have to understand the idea of that you know nominal is just looking at the regular numbers and then real adjust for inflation it's the same thing with interest rates if inflation goes up that's going to decrease the real interest rate right that's the idea of you know unexpected inflation which hurts lenders unexpected inflation hurts

lenders and it helps borrowers another concept you have to understand is the idea of CPI it's the Consumer Price Index it's the best way and most popular way we show to measure you know price changes over time and inflation basically it's a Market Basket that we can analyze and there's an equation you got to know the The Market Basket of the year you're looking for the value of the goods that we analyze and track the Market Basket divided by that same goods and same stuff in a base year so what was the value that price

of all that stuff in the base year times 100 and it pops at a number and that number tells you how the prices have changed since the base year so if you see a 120 prices went up 20% since the B base year if you see a 200 prices went up 100% since the base year you see a 95 that means prices fell 5% since the base year probably one of the hardest Concepts in this unit is the idea of the deflator the deflator conceptually is really easy it's like the CPI except it analyzes everything

so instead of just consumer goods it's analyzing you know steel and uh concrete and other things that consumers don't really buy but the businesses would buy the government buys and it looks at the prices of everything in the economy so the deflator deflates the nominal GDP the equations right here the GDP deflator is the nominal GDP divided by the real GDP time 100 again it's a number it's an index number that tells you how price has changed relative to some base year you definitely want to do some calculation and some practice on doing the deflator

and the last concept you're going to learn in this unit is the causes of inflation inflation happens for three reasons the first one is when the government just prints a bunch of money and you learn something called the quantity theory of money it's an identity that shows you m * V equals P * y now what does that mean M is amount of money in the money supply V is the velocity of money it's how much time money is spent and or how many times money is spent and resent in a given period of time

p is the prices of everything and Y is the amount of stuff we're actually producing so P * Y is the nominal GDP so this says this itty says the amount of money that's out there times how many times people spend that money over and over again equals a nominal GDP now it's important because it shows you when you increase the money supply and velocity stays the same and why the output stays the same you're going to have an equivalent change in prices so if know money supply goes up by 10% price is going to

go up exactly by 10% and the other two causes of inflation are actually super simple the first one's called demand pull this is the idea of demand goes up people want to buy a lot more stuff in your country and people bid up the price for it so demand pulls up prices the other one is called cost push cost push is the idea that there's some resource cost or you know we ran out of some key resource to produce stuff that caus the production cost to rise so now it costs more to produce stuff so

we produce less stuff causing prices to go up so either demand goes up people want more of your stuff or you can't produce as much stuff either one causes price to go up causes of inflation now overall unit 2 is not that difficult I give it four out of 10 difficulty but the concepts you absolutely have to know you have to understand the types of unemployment GDP I mean hu huge Concepts that if you don't get these you're not going to get future Concepts at all now in unit three this where things get hard it's

a be of unit there's so much stuff you got to learn it starts off the idea of aggregate demand aggregate demand is all the stuff that people want to buy in the economy at different price levels and it's got a downward sloping demand curve just like like a market demand curve except now instead of price it's price level it's the price level and the quantity demanded of everything B by everybody now this is down sloping for three reasons you need to understand the three reasons first is the wealth effect the idea that when price level

goes up the assets and people's banks are worth less right now I can't buy as much as before and so when price level goes up people buy less stuff and the opposite is well price level goes down people buy more stuff there's also the interest rate effect when inflation happens interest rates tend to go up and so people would take out less loans again these are the reasons why the aggri demand curve is downward sloping the last reason is because the foreign trade effect this is the idea that when price level goes up people from

other countries don't want to buy your stuff and so quir demand again goes down just like a market demand curve the aggate demand curve can shift an increase to the right a decrease to the left and the shifters are really simple anything that changes what people want to buy so if other countries or if there's more investment or if there's more consumer spending any of those things can shift the accurate demand either right or left there's also an accurate supply curve which is upward sloping in the short run that means when price level goes up

producers want to produce more stuff but there's also a long run graph this is the idea of you know in the long run we'll produce the same exact quantity that's the idea of Full Employment GDP and the long run aggregate supply shows you there's no relationship between price level and the real GDP we're actually producing in the long run in other words when in the long run eventually prices will go up or down and we'll still produce the same amount stuff that we did before in the long run now both the short run accurate Supply

and the long run ACC Supply can shift the short run of course shifts right if it's an increase a left if it's a decrease anything that affects producers here so price of resources could do this um technology can do this some sort of government regulations or taxes or subsidies that affects a lot of producers that could shift the short KN Supply curve this is by far the most important graph need to be able to draw showing full employment showing a recessionary gap and showing an inflationary Gap this shows the same concept we saw in the

last unit on the business cycle another key concept to watch out for is the idea of stagflation when Ag Supply shifts to the left price level goes up quantity goes down and this is like the worst case scenario we have inflation and low output which is bad now another thing you have to be able to do here is show what happens in the long run in other words when there's an event that occurs how do you go from the short run back to the long run if consumers want more stuff agage Dem man goes up

right that leads to an inflationary Gap but in the long run wages will go up cost affm will go up and the short KN Supply will shift back to the left and put us back in the long run it goes the same way for recessionary Gap assuming the econom is Up full employment if consumption goes down people buy less stuff we end up with a recessionary gap then what happens well if wages are flexible which is debatable if wages are flexible eventually prices will fall for resources wages will fall and then costs will fall for

firms so firms can produce more a supply shifts right boom right back to the long run that's creating the long run aurate supply curve curve that long run adjustment is different than economic growth economic growth is the idea of GDP going up in the long run in other words when there's an increase in investment there'd be more Capital so Agri demand would shift to the right and since we can produce more stuff short run Supply would shift to the right and the long run a supply would also shift to the right and you've seen this

before with the production possest curve the production possest curve shifting to the right is like the long run AG supply curve shifting right we can produce more stuff than we couldn't produce before that's economic growth before you get to side that you can draw the concepts on one graph keep in mind there's another graph you have to be able to show recessionary Gap inflationary Gap and full employment it's called the Phillips curve the Phillips curve shows a relationship between inflation and unemployment in the short run there's a downward sloping relationship in other words a negative

relationship between these two things either get high inflation or you know high unemployment but you usually don't have them at the same time and in the long run it's vertical there's no relationship between inflation and unemployment in the long run so with these two graphs you should be able to show when the econom is at full employment when it has an inflation Gap when it has a recessionary gap or when there's a shift in the short-run ACT supply curve and how that shifts the short-run Phillips curve the next thing you're going to learn in this

unit is the idea of fiscal policy which is the change in government spending and taxes so when the economy is doing poorly how do we fix the economy expansionary fiscal policy is when we increase government spending or cut taxes and there's contractionary fiscal policy where you increase taxes or decrease government spending and one of the last Concepts you're going to see is the spending multiplier spending multiplier is the idea when people spend that becomes somebody else's income come and then people save a portion of that and they spend the rest and that spending becomes somebody

else's income keeps happening over and over again you need to understand the idea of the marginal propensity to consume which shows you how much people consume of new income and then there's margin propensity to save which is the opposite side how much people save of new income the simple spending multiplier is one over the marginal propensity to save which means you know this is if initial change in spending happens that's going to get multiplied by this amount and that's the total change in spending after people spend and save spend and Save s over and over

and over again right there's also a tax multiplier which is one less than the spending multiplier again the math isn't super difficult it's just something you have to practice to get comfortable with the last thing in this unit is the idea of the debt the problems of fiscal policy right increasing government spending and lowering taxes seems like a good idea but you're going to have to deficit spend which is spend more then you bring in in tax revenue so the government's going to spend more then they bring in in tax revenue it means they have

to go into debt or they have to have a deficit for that given year now the debt is accumulation of all the deficits the deficit is amount that they're overspending in that given year and you should understand this idea of crowding out when the government does a lot of borrowing that increases interest rates and kind of crowds out investors and consumers from taking out loans and buying more stuff now this unit I'm going to give eight out of 10 difficulty because it has a bunch of key graphs a bunch of key Concepts maybe get slowed

down when you talk about the multiplier but none of it's like super impossible hard but it's a lot of stuff going on and it's the bulk of a macroeconomics class okay here we go we're talking about money it starts off by talking about what money is it's a mean of exchange and why it's better than the barter system you talk about commodity money and Fiat money commodity money has some sort of intrinsic value Fiat money does not and the three functions of money they IR the medium of exchange unit of account and a store of

value the next thing you talk about is M1 money supply so we talk about money in this class we're not just talking about money in currency and cash we're talking about money in people's checking accounts so demand deposits as well also understand the idea of the fractional Reserve banking the idea that Banks hold a portion of reserves and they loan out the rest of the money that ends up you know being spent by somebody and that ends up in another bank and that other bank holds a portion of that money and Loans the rest of

it out you also understand the idea of bank balance sheets bank balance sheets shows the assets and liabilities for a given Bank you should be able to use this to calculate the required Reserve ratio the excess reserves uh required reserves is the amount of money that a bank has to hold by law excess reserves the amount of money they can loan out if they want to now at this point you're also going to learn about the money multiplier we learned about the spending multiplier in unit three now it's the same idea except we're talking about

spending and you know consuming and saving we're talking about Banks lending so when a bank lends money someone takes the money spends it ends up in another bank that bank holds a portion and then loans the rest out that keeps happening over and over and over again the multiplier for the money multipliers right here one over the reserve requirement remember the spending multiplier was one over the marginal pendency to save the money multiplier one over the reserve requirement same concept though right the initial change in money supply times multiplier shows the total change in the

money supply key graph in this unit is the money market graph it shows a supply and demand for money you've got interest rates you've got the quantity money it's got a downward sloping demand demand for money happens for two reasons transaction demand and asset demand people need it you know money to buy stuff and they need money or they like to have their assets in money as opposed to have their assets in bonds or stocks or something that's not money so there's a demand for money the supply is vertical it's set by the fed and

that comes together and sets the nominal interest rate now the FED can control that money Supply they can increase it shift to the right and now lower the interest rate or they can decrease it shift it to the left and they can increase the interest rate that's called monetary policy remember the FED controls the money supply if they increase the money supply lowers interest rates which would increase investment in consumer spending people would take out more loans buy more stuff it would increase Agri demand that's called expansionary monetary policy If the Fed were decreasing in

money supply that would increase interest rates decrease investment decrease consumer spending people take out less loans because it's expensive to pay back the loan and that would decrease AG demand that's called contractionary monetary policy but understanding that is not enough you have to understand how they shift the money supply there's three shifters Reserve requirement the discount rate and open market operations the reserve requirement the FED can decide to choose whether to increase or decrease the amount that banks have to hold discount rate is how much uh banks are charged by the FED when they borrow

money from the fed and then open market operations when the FED buys or sells bonds here's the rules you got to watch out out for uh it shows you what happens when the reserve requirement goes up or down discount rate goes up or down and when the FED buys or sells bonds to the money supply so make sure you memorize this you got to know this that right there is monetary policy keep in mind there's a difference between the discount rate is what the FED charges Banks and the federal funds rate is what banks charge

each other so if a bank needs money they can either go they first they can go to the people they know lent the money to and say hey I don't need the money back that's one option or they can go to another bank or they can go to the Fed so when they go to the fed that's a discount rate that's what they're charged when they go to another bank that's called the federal funds rate the name's horrible they should be reversed right but just remember federal funds rate is what banks charge other Banks the

next concept you have to understand is the idea of loanable funds loanable funds is another key graph that shows the demand and the supply of loans the demand for loans is by borrowers these the people who want to borrow money the supply is by lenders all the people who want to lend out money and it gives you the real interest rate now this curve of course can shift both Supply or demand for example if the government does a lot of borrowing that increases the demand for loans because the government Say Hey I want to borrow

some of that and again interest rates go up now the graph shows you the concept of crowding out which I talked about earlier if the government deficit spends they demand more money that increases demand for loans higher interest rate higher real interest rate means less investment and uh less consumption of you know things that people would take out loans for so overall unit four is pretty hard I give it eight out of 10 difficulty because it has some graphs and it has some calculations so it's bring a lot of different concepts together but it's all

talk about one big concept monetary policy if you get that you're going to be fine now for the last unit we talk about international trade and foreign exchange it's going to start off with the balance of payments this shows all the transactions between different countries and it has two different accounts the current account and the financial account the current account is made up of first the balance of trade that's the first idea I want you to understand exports and imports if you export more than you import then you have a trade surplus if you import

more than you export you have a trade deficit so the first part that you need to understand is the goods and services that are sold are sold and kept track of in the current account now investment income is also counted in the current account and so is net transfers so when one country you know gives Aid to another country or remittance when one person in one country lives there and they send money back to their family these things all count in the current account the financial account is basically Financial assets it shows inflow and outflow

of money coming in or out of a country now if the inflow into your country is greater than the outflow that means you have a surplus in the financial account if outflow is more than the inflow then you have a deficit in the financial account now keep in mind when a country has a deficit in the current account that means they have to have a surplus in the financial account that's why it's called the balance of payment the next concept you're going to learn is the big Concept in this unit foreign exchange it talks about

the relative value of currencies to each other now the first thing you understand is the idea of appreciation this is the idea that a country's currency increases in value relative to other country's currency and the opposite is the idea of depreciation now keep in mind the relationship between appreciation depreciation and net exports when your current country's currency appreciates that's going to cause your net exports of that country to fall people going to buy less of your stuff because it's more expensive to buy your stuff when your currency depreciates that's going to cause the net exports

to go up so don't get confused oh depreciation is a bad thing it's not it's actually great if you're an exporter it's bad if you're an impor order also understand that there's a graph here it looks like this this shows you the supply and demand uh for dollars relative to Euro so be able to draw the demand Supply keep in mind the demand is by uh because we're analyzing dollars here the demand is by Europeans and the supply is by Americans also understand that when there's a change in one market there's a change in a

corresponding other Market in other words this is demand for dollars and the supply for dollars there's also the supply and demand for euros and it sets The Exchange R so for example Europeans want to go on vacation in the United States they need more American dollars so the demand for dollars increases and the dollar is going to appreciate relative to the euro but at the same time Europeans are going to supply more of their Euros that causes the euro to depreciate so keep in mind for any graph there's also a phantom graph that goes along

with it and the rule is when demand goes up for one the other country has to supply more of theirs also there are four shifters of foreign exchange the first one is the the one we just did taste and preferences if people prefer more things from one country then they're going to demand more of that currency so they can go buy it so that'll cause that currency to appreciate so taste and prefence is really easy next one is income if a country is richer they buy more things including things from other countries then there's inflation

so if the price level goes up in my country I don't want to buy stuff in my country anymore because it's higher price I go buy other country stuff and last one is interest rates which gets tricky interest rates are now the opposite of what you normally thought all the way back in unit three and unit four now we talk about interest rates we're saying that interest is a good thing right in other words interest rates higher interest rates will bring in more inflow in your country because other countries want to get the higher rate

of return keep in mind two currencies can't appreciate relative to each other at the same time so the dollar can't appreciate relative to the euro as the Euro appreciates relative to dollar one goes up and the other one has to go down last thing here is the idea of floating and fixed exchange rates floating exchange rates allow supply and demand to set the exchange rate a fixed exchange rate is when the government of the country tries to manipulate their currency to keep it fixed or pegged to another country's currency now unit five is super short

and it doesn't have a lot of graphs but I give it a six out of 10 difficulty because it's just so darn important you have to understand how to get exchange rates and don't get it tripped up when you're analyzing two different countries and whether the currency appreciates or depreciates hey thank you so much for watching this video I wish you all the best of luck on the AP test or on your big final exam hey you're going to do awesome okay thanks for watching till next time