00:01
So the key thing about this is to think about what these curves are measured in, what variables these curves are measured in.
00:08
So i'm going to draw an a -e curve and an ad curve, right? a -d.
00:16
An a -d curve is in y -p space and an a -e curve is usually in y -a -e space, right? so notice that these things are defined in different variables.
00:28
They're showing different relationships, right? aggrageted expenditure usually looks something like this, right? and aggregate demand usually looks something like this.
00:39
So if aggregate expenditure is a function of the price, right? a price change will say, let's, you know, shift the whole thing.
00:51
Because price is not on the axis, right? that's what is causing it a shift...