We've learned about demand for a good or service, but aggregate demand is different: its the demand for everything bought in an economy. In this video, we discuss how aggregate demand (AD) is different from demand and why aggregate demand is downward sloping. Created by Sal Khan.

What constitutes a recession? Two quarters of negative real GDP growth? Well, most of the time that “rule of thumb” definition works, but not always. The NBER Business Cycle Dating Committee has a more nuanced way of determining what a recession is. This essay discusses where recessions come from, how they are determined, and how they end.

How the Chinese buying of American debt leads to lower interest rates. Created by Sal Khan.

The course is intended for people who would like a deeper understanding of the American housing finance system. The focus will be on providing necessary background knowledge rather than on evaluating specific policy proposals.  Near the end of the course, participants will be encouraged to bring up policy issues and to discuss them in light of the information presented.

Unlike European option, an American options can be exercised at any point before it expires. In this video we walk through the process of exercising an American call option. Created by Sal Khan.

Unlike European option, an American options can be exercised at any point before it expires. In this video we walk through the process of exercising an American put option. Created by Sal Khan.

This online activity shows how to use FRED, the Federal Reserve's free online economic data website, to analyze changes in real gross domestic product (GDP) and GDP makeup over time. Following simple instructions, you will locate spending data for the individual components of real GDP, and then combine them into a highly informative area graph. You will also use FRED's ability to stack data and see how trade—imports and exports—contributes to GDP. The resulting customized graph will let you see how economic output varies from year to year.

Intermediate students are asked to analyze data on the components of consumption and investment expenditures and explanatory variables based on textbook models of each. Students look for rough correlations between the explanatory and dependent variables.

Consumers often measure whether they got a good deal on a purchase by the difference between the original price and a sales price. The bigger the difference is, the better the deal feels. The original price a consumer is exposed to becomes a reference point, or an anchor. The April 2021 issue of Page One Economics® Focus on Finance explains the anchoring effect and the role it plays in the decisionmaking process when it comes to what consumers are willing to pay for a good or service.

The annual percentage rate (APR) that you are charged on a loan may not be the amount of interest you actually pay. The amount of interest you effectively pay is greater the more frequently the interest is compounded. In this video, we calculate the effective APR based on compounding the APR daily. Created by Sal Khan.

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Included H5P activities: 5

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Application of Oral History to Economics: Family Economic History The assignment will connect an oral history approach to the examination of economic concepts such as opportunity cost of attending school, economic crises (inflation and unemployment, etc.), and standard of living over time. Particularly, students will interview parents, grandparents, or family members from older generations regarding the types of work they performed, economic decisions they have made, and the economic conditions while they were growing up. The project develops a student's ability to understand and integrate these concepts from a variety of perspectives and real world situation.

Arbitrage is taking advantage in price differences to earn a profit. In this video we explore arbitrage opportunities in options markets. Created by Sal Khan.