Alvy and Annie are arguing in his apartment. Annie's moving in, but Alvy wants her to keep her old place, too.
She takes that as a sign that he's not serious about her. He tells her to chill. Her old place is like a life raft: It's a way to prevent them from feeling like they're married.
The argument meanders, as arguments do: Annie thinks the fact that Alvy keeps pushing her to take college courses means he thinks she's dumb. He says that's not true; he just digs adult education.
Cut to Alvy and Annie speeding down a rural road in her Volkswagen convertible.
At the house on the water, Annie ponders signing up for some literature courses, and Alvy wants to have sex. Annie wants to get high first.
Alvy's not exactly thrilled. Annie thinks Alvy should smoke pot because it'll help with his anxiety.
In an attempt to "set the mood," Alvy sticks a red light bulb in the lamp and hops into bed with Annie. Annie's not exactly thrilled, and we see her leave her body, like a ghost.
Ghost Annie sits in a nearby chair, then asks Alvy where her drawing pad is. She wants to kill some time while Alvy and Real Annie are otherwise occupied.
Alvy addresses Ghost Annie, saying she feels distant.
Real Annie tells Alvy he has her body; she just needs marijuana. He's still not having it. Not with a Ghost Annie looming nearby, hungry for paper and 4B pencils.
Alvy likens Annie's smoking pot before sex to him getting laughs from people who are stoned: It's not real because they're always laughing anyway.
Real Annie asks Alvy if he was always funny, and we flash back to Alvy at a job interview. It's to write jokes for the host of a TV show, and the host himself gives Alvy an idea of what he wants by doing a little routine.
It's awful. It's cringe-worthy. We hear Alvy's inner monologue: He thinks it's horrible, too.
Alvy thinks he's in the wrong business and wishes he had the nerve to write jokes for himself.
Cut to an applauding audience at the University of Wisconsin. Alvy's doing stand-up comedy and absolutely destroying it. The audience loves him.
Backstage, Annie tells Alvy he was awesome. Oh, and she's starting to get more of the references in his jokes, too. Way to go, Annie.
Annie's excited for Alvy to meet her family tomorrow. She thinks they'll really like him. He thinks they'll hate him immediately.