Week 5 · Readings & resources

Week 5 — Readings & Resources

Principles of Macroeconomics Free sample edition

Your primary reading is Chapter 5 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 10 items (4 readings and 6 videos). Allow 88–103 minutes for everything. Each group points back to the matching chapter section and class-session segment, so use the full menu when you want more practice, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (16–20 min total)

① Why does demand slope down? Savings, borrowing, and trade

Chapter 5, Section “Explain why aggregate demand slopes down: three economy-wide effects” · Session 1, Segment 2, “Why aggregate demand slopes down” · Remember: when every price falls at once there is nothing to switch to, so the slope comes from the wealth, interest-rate, and exchange-rate effects.

Macro 3.1 - Aggregate Demand — ReviewEcon — an exam-review walk through the three reasons aggregate demand slopes down, the difference between a change in the price level and a change in aggregate demand, and the list of demand shifters; the video calls the third reason the net export effect, which is this course's exchange-rate effect. (video, 8 min) (captions: automatic)
AS/AD Model Review — ReviewEcon — a one-page review of the whole model, from the two axes through demand, both supply lines, and their shifters; read the sections on the axes, aggregate demand, and the two supply lines. This builds on Week 2's work with real GDP and the GDP deflator, the two measures the axes use. (reading, 10–15 min)

② Why do the supply lines look different? Sticky now, vertical later

Chapter 5, Section “Meet the two supply curves: sticky in the short run, vertical in the long run” · Session 1, Segment 3, “Short-run and long-run aggregate supply” · Remember: sticky costs tilt the short-run line up, and fully adjusted costs stand the long-run line straight at potential output.

Short Run vs. Long Run Aggregate Supply Explained — Dan McGrain — a classroom-style explanation of why firms answer a higher price level with more output while wages are stuck, and why that response fades once wages catch up; listen for potential output, the line the long run returns to. (video, 9 min) (captions: automatic)
Sticky Wages, Jargon Alert in Econ Focus — Federal Reserve Bank of Richmond — a one-page magazine explainer on why pay is slow to adjust and how economists try to measure that stickiness; read it for the idea behind the upward-sloping short-run line, and skip the research details at the end if you are short on time. (reading, 4–6 min)

③ Slide along or shift? Reading the crossing

Chapter 5, Section “Tell a movement along from a shift: the term's most important habit” · Session 2, Segment 5, “Movement along versus shift” · Remember: a change in the price level slides the economy along a curve, and anything else shifts the whole curve.

Movements along Aggregate Demand vs. Shifts in AD — Jason Welker — a careful whiteboard lesson that separates a price-level change, which moves the economy along the demand curve, from a change in spending, which moves the whole curve; pause after each example and name which one it is. Use it while working through the Week-5 module overview. (video, 11 min) (captions: automatic)
Macro 3.5 & 3.6 AS/AD Equilibrium and Changes — ReviewEcon — a review of where the curves cross and what happens to the price level and real output after a demand shift or a supply shift; watch the shift examples and say the curve, the direction, and the new crossing before the video does. Stop here before recessionary and inflationary gaps; next week takes those up. (video, 11 min) (captions: automatic)

④ When prices and output split: supply shocks

Chapter 5, Section “Read a supply shock: when P and Y move apart” · Session 2, Segment 7, “Supply shocks and stagflation” · Remember: a demand shift moves the price level and output together, and a short-run supply shift moves them apart.

Demand and Supply Shocks in the AD-AS Model — Jason Welker — a whiteboard lesson that pushes demand and supply curves in both directions and reads the new price level and output each time; focus on the supply shocks and check that the price level and output move apart. (video, 11 min) (captions: automatic)
Recession, Hyperinflation, and Stagflation: Crash Course Economics #13 — CrashCourse — a lively tour of three economic troubles; watch the stagflation segment, where rising prices and falling output arrive together, and compare it with the chapter's oil-price shock. (video, 10 min) (captions: creator)
Understanding Supply and Demand Shocks amid Coronavirus — Federal Reserve Bank of St. Louis, Open Vault — a plain-language blog post that defines supply shocks and demand shocks with everyday examples, from weather to an oil embargo; read the sections on supply shocks and demand shocks and skip the later policy section. (reading, 8–12 min)

Optional one-stop reference (free online reference)

Aggregate Supply — Econlib — a short topic guide on the relationship between the price level and real output that firms supply; read the introduction and the section on supply shocks, and skip the history section and the related-topic links. (reading, 6–10 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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