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Investment and real interest rates | Macroeconomics | Khan Academy
 
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Intuition as to why high real interest rates lead to low investment and why low rates lead to high investment Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/connecting-the-keynesian-cross-to-the-is-curve?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/keynesian-cross-tutorial/v/keynesian-cross-and-the-multiplier?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 181385 Khan Academy
Connecting the keynesian cross to the IS curve | Macroeconomics | Khan Academy
 
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Introduction to the Investment/Savings curve Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/loanable-funds-interpretation-of-is-curve?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/investment-and-real-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 176248 Khan Academy
Government spending and investment spending in the AS-AD model
 
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Assignment 02 Sem 02 2011 Question 10 Why an increase in government spending leads ot a decrease in investment spending in the AS-Ad mdoel. It is also know as crowding out.
Views: 11596 lostmy1
What shifts the IS or LM curves
 
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This video goes over the causes, intuition, and equations behind the possible causes of shifts for the IS and LM curves in the IS/LM model. Each shift of the IS curve is explained and explored in detail. We also go over the impacts on the graph and the intuition behind it. The possible shifts for the LM curve are also explored and discussed in detail. Each resulting equilibrium is found and discussed to make sure understanding is clear. More information about this topic can be found at http://www.freeeconhelp.com/2012/04/what-causes-shifts-in-is-or-lm-curves.html
Views: 138443 Free Econ Help
Change In Investment Demand and the Loanable Funds Market - Intermediate Macroeconomics
 
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Starting off with the classical economy model in the long run graph in equilibrium, (aka the Aggregate Model, the Market for Loanable Funds) we shock investment demand. Showing what happens to real interest rates and investment given an increase in investment demand (0:25), and then given a decrease in investment demand (4:52). --------------------------------------------- http://youtu.be/JlOs6AyYiTY - Overview of Classical Aggregate Model in the Long Run http://youtu.be/2j780pByEeI - A Change in Investment Demand http://youtu.be/69mSo2pIXUk - A Fiscal Contraction http://youtu.be/RJ7a5nEU5aA - A Fiscal Expansion
Views: 4581 economicurtis
EC1002 - 10.05 Investment Savings Equilibrium (IS Curve)
 
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Thanks for watching a sample of the Quickienomics Online Learning Experience! Check out www.quickienomics.com for the full video and description!
Views: 3218 Quickienomics
Government spending and the IS-LM model | Macroeconomics | Khan Academy
 
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How a change in fiscal policy shifts the IS curve Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/balance-of-payments-current-account?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/lm-part-of-the-is-lm-model?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 249215 Khan Academy
Investment and consumption | GDP: Measuring national income | Macroeconomics | Khan Academy
 
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Difference between every day and economic notions of investment and consumption Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/income-and-expenditure-views-of-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/circular-econ-gdp-tutorial/v/more-on-final-and-intermediate-gdp-contributions?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 309477 Khan Academy
IS-LM model: Shifts of the IS-curve
 
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Difference between a movement along the IS-curve and a shift of the IS-curve It is necessary to distinguish between a movement along a given IS curve and a shift of this IS curve. There is a movement along an IS curve if the interest rate changes. A shift of the IS curve is caused by a change in any of the autonomous factors that changes the demand for goods and the equilibrium level of output and income, given the interest rate. These autonomous factors are factors like government spending, taxation, consumer and investor confidence.
Views: 29394 lostmy1
IS/LM Introduction
 
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This clip presents a standard graphical derivation of the IS/LM model. The IS curve collects all equilibria of the goods market; the LM curves equilibria of the financial market.
Views: 318992 Department of Economics
EC1002 Chapter 10 Lesson 5 - Investment - Savings Equilibrium (IS Curve) [Full]
 
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Welcome to the Real Quickienomics. You are watching the full version of EC1002 Introduction to Economics Chapter 10 Lesson 5 - Investment - Savings Equilibrium. Key Topics: - What is a IS curve and why must we understand it? - Detailed, step-by-step instructions on how to derive the IS curve using the Keynesian Cross Diagram - The IS curve can be affected in 3 ways: Movement, Shift, and Rotation. How do we determine what factors affect the IS curve? - A useful way to determine how an IS curve is affected: The Mathematical Approach to deriving the IS curve, including the 4 simple steps to do so - What is the Capital Formation Equation and how do we derive it?
Views: 573 Quickienomics
IS-LM model:  Interest rates and investment
 
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The relationship between interest rates and investment spending
Views: 22139 lostmy1
IS- Equation, Curve, Shift & Slope - Economics | B.com (Hons.) | Eco (Hons.)
 
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Register StudyKhazana and Get 200Rs. Use REFERRAL CODE:- JRUUD In this video, you will learn: 1) Meaning of IS curve 2) Properties of IS curve 3) Change in investment as the interest changes. 4) Equation, signs and close analysis of the equation 5) Meaning of Autonomous spending 6) you will draw graphs and study the equation signs 7) Slope of IS curve Mr. Utkarsh Bhargava is Economics honours graduate from Delhi university and Masters in Economics. He is a central government awardee for his excellent results in 2015. He is an official CBSE subject expert and NCERT resource person and PGT Economics at Mayo International school since 2014. To watch more tutorials visit: https://www.youtube.com/c/StudyKhazana ** Stay Connected with Us ** https://www.facebook.com/studykhazana https://twitter.com/studykhazanaa https://www.instagram.com/study_khazana/ Full Course and Lecture Videos now available on (Study Khazana) login at http://studykhazana.com/ Contact Us : +91 8527697924 Mail Us: [email protected]
Views: 9262 Study Khazana
The Money Market- Macroeconomics 4.6
 
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In this video I explain the money market graph with the the demand and supply of money. The graph is used to show the idea of monetary policy and how changing the money supply effects interest rates. Thanks for watching. Please subscribe Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 346576 Jacob Clifford
LM part of the IS-LM model | Macroeconomics | Khan Academy
 
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How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/government-spending-and-the-is-lm-model?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/loanable-funds-interpretation-of-is-curve?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 358318 Khan Academy
IS-LM model:  Government spending and the IS-curve
 
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What happens to the variables if government spending changes. Take, for instance, an increase in government spending. At each and every interest rate, the demand for goods and the equilibrium level of output and income are higher than before. This is indicated by a rightward shift of the IS curve. At the same interest rate government spending is higher, the demand for goods therefore increases and the level of output and income is higher. Since the level of output and income is higher the level of consumption spending and investment spending is higher. All the other autonomous spending components are unchanged.
Views: 20030 lostmy1
IS-LM Curves and Diagram - Fiscal Shock and a Shift to the IS Curve (Government Purchases Increase)
 
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We deal with the IS LM Model to find the effect of an increase in government spending. First, we derive the IS and LM Curves given the increase in G. This leads to a shift in the IS Curve. Then we calculate the new equilibrium interest rate (r*) and output/income (Y*). Then we use the IS-LM diagram to investigate the effect of the fiscal expansion. And we end with some intuition. More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions ___________________________________________________________ Consider the economy of Hicksonia. http://youtu.be/_19w5dcGhCo?t=2m30s a. The consumption function is given by: C=200+0.75(Y-T) The investment function is: I=200-25r Government purchases and taxes are both 100. For this economy, graph the IS curve for r changing from 0 to 8 http://youtu.be/_19w5dcGhCo?t=5m30s b. The money demand function in Hicksonia is (M/P)^d=Y-100r The nominal money supply is 1000 and the price level P is 2. For this economy, graph the LM curve for r ranging from 0 to 8 http://youtu.be/_19w5dcGhCo?t=9m c. Find the equilibrium interest rate r and equilibrium level of income Y. http://youtu.be/vx6w5JFIjzw d. Suppose that government purchases are raised from 100 to 150. How does the IS curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/b28lsOUFOtw e. Suppose instead that the money supply is raised from 1000 to 1200. How does the LM curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/yBBpE8PzoKU f. With the initial values for monetary and fiscal policy, suppose that the price level rises from 2 to 4. What happens? What are the new equilibrium interest rate and level of income? http://youtu.be/5EPvwarCqDA g. Derive and graph an equation for the aggregate demand curve. What happens to this aggregate demand curve if fiscal or monetary policy changes, as in part (a) and (e)? from Mankiw's Macroeconomics (8th ed) - Aggregate Demand Part 2 (Chapter 12) - Problem 3 ----------------------------------------------------------------
Views: 16908 economicurtis
How Interest Rates Affect the Market
 
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Investors should observe the Federal Reserve’s funds rate, which is the cost banks pay to borrow from Federal Reserve banks. What's going on with Japan's interest rates? Read here: http://www.investopedia.com/articles/investing/012916/bank-japan-announces-negative-interest-rates.asp?utm_source=youtube&utm_medium=social&utm_campaign=youtube_desc_link
Views: 79977 Investopedia
IS-LM model:  Investment function
 
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The investment function - interest rates and output
Views: 17258 lostmy1
IS-LM model: Derivation of an IS curve
 
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Graphical derivation of an IS curve In this video clip the IS curve is derived using a numerical example. It is assumed that a decrease in the interest rate from 10% to 8% increases investment spending by 50. In the goods market diagram this increases the vertical intercept by 50 and given a multiplier of 5 the increase in the equilibrium income is 250 (from 1500 to 1750). From this information an IS curve can be plotted showing combinations of the interest rate and level of output where the goods market is in equilibrium
Views: 124524 lostmy1
Investment and Aggregate Demand
 
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This short tutorial video looks at some of the factors that determine capital investment and also the significance of a rise in investment for the macroeconomy. For more help with your A Level / IB Economics, visit tutor2u Economics http://www.tutor2u.net/economics If you find this topic video helpful, please SUBSCRIBE to our YouTube Channel For more help with Economics: Follow tutor2u Economics on Twitter: https://twitter.com/tutor2uEcon https://twitter.com/tutor2uGeoff - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 10634 tutor2u
IS-LM Model Diagrams - The Effect of Policy Mixes - Shifting Both the IS and LM Curves
 
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In this problem, we use the IS-LM diagram to investigate the effect of fiscal and monetary policy mixed. That is, what is the effect of shifts to both the IS Curve and LM Curve on equilibrium interest rate (r*) and output/income (Y*), given changes to government purchases or taxes, and given changes to the money supply. More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions ------------------------------------------------------------ Monetary policy and fiscal policy often change at the same time. 0:55 a. Suppose that the government wants to raise investment buy keep output constant. In the IS-LM model, what mix of monetary and fiscal policy will achieve this goal? 0:42 b. In the early 1980s, the US Government cut taxes and ran a budget deficit while the Fed pursued a tight monetary policy. What effect should this policy mix have?
Views: 21974 economicurtis
IS-LM Model & Diagram - LM Curve Shift from a Monetary Shock (Money Supply Increase)
 
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We deal with the IS-LM Model to find the effect of a monetary expansion. First, we derive the IS and LM Curves given the increase in M. This leads to a shift in the LM Curve. Then we calculate the new equilibrium interest rate (r*) and output/income (Y*). Then we use the IS-LM diagram to investigate the effect of the increase in the money supply. And we end with some intuition. More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions ___________________________________________________________ Consider the economy of Hicksonia. Consider the economy of Hicksonia. http://youtu.be/_19w5dcGhCo?t=2m30s a. The consumption function is given by: C=200+0.75(Y-T) The investment function is: I=200-25r Government purchases and taxes are both 100. For this economy, graph the IS curve for r changing from 0 to 8 http://youtu.be/_19w5dcGhCo?t=5m30s b. The money demand function in Hicksonia is (M/P)^d=Y-100r The nominal money supply is 1000 and the price level P is 2. For this economy, graph the LM curve for r ranging from 0 to 8 http://youtu.be/_19w5dcGhCo?t=9m c. Find the equilibrium interest rate r and equilibrium level of income Y. http://youtu.be/vx6w5JFIjzw d. Suppose that government purchases are raised from 100 to 150. How does the IS curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/b28lsOUFOtw e. Suppose instead that the money supply is raised from 1000 to 1200. How does the LM curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/yBBpE8PzoKU f. With the initial values for monetary and fiscal policy, suppose that the price level rises from 2 to 4. What happens? What are the new equilibrium interest rate and level of income? http://youtu.be/5EPvwarCqDA g. Derive and graph an equation for the aggregate demand curve. What happens to this aggregate demand curve if fiscal or monetary policy changes, as in part (a) and (e)? from Mankiw's Macroeconomics (8th ed) - Aggregate Demand Part 2 (Chapter 12) - Problem 3 ----------------------------------------------------------------
Views: 24689 economicurtis
Effectiveness of fiscal policy in the IS-LM model
 
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How effective an expansionary fiscal policy is in the IS-LM model to increase the level of output and income will depend on what happens to investment spending during this process. If investment spending is very sensitive to the interest rate -- in other words a small rise in the interest rate will cause relative large decrease in investment spending then fiscal policy is less effective since the increase in government spending causes an increase in the interest rate which decreases investment spending. Government spending is now crowding out investment spending. The less sensitive investment spending is for a change in income and output the less is the increase in investment spending for a given change in income and output. While government spending increases the level of output and income it does not bring about a significant increase in investment spending. Fiscal policy is therefore less effective in increasing the level of output and income the greater the interest sensitivity of investment spending and the less sensitive investment spending is for a change in income.
Views: 9513 lostmy1
IS-LM model:  IS curve as an events chain
 
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An increase in the interest rate decreases investment spending since investment spending is negative function of the interest rate. A decrease in investment leads to a decrease in the demand for goods, and through the multiplier effect, the level of output and income decreases. As the demand for goods and output decreases, both consumption spending and investment spending decrease, and the multiplier process comes into operation.
Views: 10974 lostmy1
Money supply and demand impacting interest rates | Macroeconomics | Khan Academy
 
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Examples showing how various factors can affect interest rates Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/MPC-tutorial/v/mpc-and-multiplier?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/interest-price-of-money-tutorial/v/interest-as-rent-for-money?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 251112 Khan Academy
IS-LM MODEL part 1 HINDI
 
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(Asst. Prof. SANAT SHRIVASTAVA is a Faculty at Kalhana Academy an Institute for IAS, New Delhi) Follow Sanat on Facebook - https://www.facebook.com/sanat822 Follow Sanat on Linkdin - https://in.linkedin.com/in/sanat17 e-mail Id - [email protected] https://sanatecoholics.blogspot.com/ #economics #sanat #ecoholics Follow Sanat on Instagram! Username: sanat.shrivastava https://www.instagram.com/sanat.shrivastava?r=nametag Contact - 7223946092 (Whatsapp Number) Download our ECOHOLICS app from play store: https://play.google.com/store/apps/details?id=co.classplus.ecoh
Views: 145389 ECOHOLICS
IS-LM model:  Movement along an IS curve
 
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Movement along an IS curve This video clip summarises and captures what happens to the different variable (the interest rate, investment spending, demand for goods , consumption spending, government spending and income) in the model as you move along the IS curve. • Investment spending is different because of different interest rates and level of output. • The demand for goods is different because investment spending and consumption spending are different. • The level of income is different because the demand for goods differs. • Consumption spending is different because the level of income differs. • All autonomous variables remain unchanged. A movement from point 1 to point 2 therefore indicates that as the interest rate declines, investment spending, the demand for goods and the equilibrium level of output and income increase.
Views: 23756 lostmy1
Crowding out | AP Macroeconomics | Khan Academy
 
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How government borrowing could have negative effects on investment and economic growth by "crowding out" private borrowers/investors in the loanable funds market. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything https://www.youtube.com/subscription_center?add_user=khanacademy. View more lessons or practice this subject at http://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-long-run-consequences-of-stabilization-policies/crowding-out/v/crowding-out-ap-macroeconomics-khan-academy?utm_source=youtube&utm_medium=desc&utm_campaign=apmacroeconomics AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us! Khan Academy is a nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. We offer quizzes, questions, instructional videos, and articles on a range of academic subjects, including math, biology, chemistry, physics, history, economics, finance, grammar, preschool learning, and more. We provide teachers with tools and data so they can help their students develop the skills, habits, and mindsets for success in school and beyond. Khan Academy has been translated into dozens of languages, and 15 million people around the globe learn on Khan Academy every month. As a 501(c)(3) nonprofit organization, we would love your help! Donate or volunteer today! Donate here: https://www.khanacademy.org/donate?utm_source=youtube&utm_medium=desc Volunteer here: https://www.khanacademy.org/contribute?utm_source=youtube&utm_medium=desc
Views: 16759 Khan Academy
Investment Demand
 
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This video lesson discusses investment demand. There is an inverse relationship between interest rates and the quantity of investment demanded. A change in the overall business conditions will move the investment demand curve to the right or left.
Views: 6134 Chris Thomas
Derive an IS curve
 
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The challenge is to derive an IS curve given the following information: A decrease in the interest rate from 6% to 4% increases investment spending by 200. The multiplier is 5. In the goods market model the vertical intercept is 800 before the decrease in the interest rate from 6% to 4%.
Views: 17723 lostmy1
Macro 3.1- Aggregate Demand Practice
 
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In this video. I explain the most important graph in most introductory macroeconomics courses- the aggregate demand model. In this video I cover aggregate demand (AD), aggregate supply (AS), and the long run aggregate supply (LRAS). Make sure that you feel comfortable drawing it and showing the economy at full employment, with a recessionary gap, and with an inflationary gap. Thanks for watching. Please subscribe! If you need more help, check out my Ultimate Review Packet http://www.acdcecon.com/#!review-packet/czji Watch the next video in this series- Aggregate Supply https://www.youtube.com/watch?v=UwAQRnpVMzI Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 361536 Jacob Clifford
Details on shifting aggregate planned expenditures | Macroeconomics | Khan Academy
 
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Showing how a change in government spending can lead to a new equilibrium Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/keynesian-cross-tutorial/v/keynesian-cross-and-the-multiplier?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/keynesian-cross-tutorial/v/keynesian-cross?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 120944 Khan Academy
The Multiplier Effect- Macro 3.9B
 
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A new econ video every Tuesday! In this video I explan the two multipliers that you will see in a standard macroeconomics course: The Spending Multiplier and the Money Multiplier. *Note* I didn't mention that the tax multiplier is always negative. give you a few practice questions so be sure to pause the video and try it on your own. Don't freak out about the math. Most courses don't require that you actually understand the math behind geometric series, but you do need to know the equaltions. Thanks for watching. If you want me to keep making more videos, please subscribe. More about the multiplier https://www.youtube.com/watch?v=Xg-0z5RWbAU&index=11&list=PLBC35DEA1D1A98034 Spending and Tax Multiplier Practice https://www.youtube.com/watch?v=kgAgYi0nuM8 The Money Multiplier- How Banks Create Money https://www.youtube.com/watch?v=JG5c8nhR3LE Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3... Microeconomics Videos https://www.youtube.com/watch?v=swnoF... Watch Econmovies https://www.youtube.com/playlist?list... Follow me on Twitter https://twitter.com/acdcleadership
Views: 329863 Jacob Clifford
General Equilibrium Models ISLM Curve | Prof Narayan Sinha
 
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An EMPC VMOU Production Prof. Narayan Sinha Economist
Views: 6413 vmouonline
Macro 3.3- Long Run Aggregate Supply, Recession, and Inflation (LRAS)
 
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In this video I explain the most important graph in your macroeconomics class. The aggregate demand and supply model. Make sure that you understand the idea of the long run aggregate supply and how to draw a recessionary gap and inflationary gap. Keep in mind that the "long run" is not a specific amount of time. The long run refers to enough time for resource prices (like wages) to adjust when there is a change in price level.Thanks for watching. Please subscribe. If you need more help, check out my Ultimate Review Packet http://www.acdcecon.com/#!review-packet/czji Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 497175 Jacob Clifford
Aggregate demand | Aggregate demand and aggregate supply | Macroeconomics | Khan Academy
 
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Understanding how aggregate demand is different from demand for a specific good or service. Justifications for the aggregate demand curve being downward sloping Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/v/shifts-in-aggregate-demand?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/inflation-topic/phillips-curve-tutorial/v/phillips-curve?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 817770 Khan Academy
Keynesian Aggregate Expenditure Model
 
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A video introducing the Aggregate Expenditure Model developed by John Maynard Keynes.
Views: 130006 Kyle Purpura
Financial System Saving and Investment Part 8 Loanable Funds Model
 
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A simple model that explans how shifts in the supply of national savings and demand for borrowing to finance investment influence interest rates.
Views: 2068 Mike Dennis
IS-LM: Fiscal & monetary policy
 
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This clip shows in simple examples how fiscal and monetary policy works in the IS/LM model. A combination of fiscal and monetary policy -- the policy mix -- can be used to achieve macroeconomic policy goals.
Views: 166001 Department of Economics
IS-LM model: IS curve as an events chain
 
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An increase in the interest rate decreases investment spending since investment spending is negative function of the interest rate. A decrease in investment leads to a decrease in the demand for goods, and through the multiplier effect, the level of output and income decreases. As the demand for goods and output decreases, both consumption spending and investment spending decrease, and the multiplier process comes into operation.
Views: 11 econom
Macro Problem - Calculate the IS Curve & LM Curve Equations - Equilibrium Interest Rate & Output
 
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In this problem, we're given equations that describe this economy, we're asked to explain each part of each equation, then derive the IS Curve and calculate the LM Curve. We graph the IS curve and LM curve diagrams. Then - using the IS and LM equations we just solved for - we find the equilibrium interest rate (r*) and real-income/real-output (Y*). More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions _____________________________________ ~ 1:19 a. Identify each of the variables and briefly explain their meanings ~ 5:43 b. From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph. ~ 9:13 c. From the above list, use the relevant set of equations to derive the LM curve. Graph the LM curve on the same graph you used in part (b) ~ 10:30 d. What are the equilibrium level of income and equilibrium interest rate? From Mankiw's Macroeconomics (8th ed) Aggregate Supply Part 1 (Chapter 11) Problem 6 -------------------------------------------------------
Views: 85308 economicurtis
ISLM Practice Problem Part 1 - Deriving the IS and LM Curves, and the IS-LM Diagram
 
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This problem deals with the IS LM model - Given equation descriptions of consumption, investment and money demand - and given values for government purchases, taxes, the money supply, we calculate the IS Curve, we build the LM Curve, and we find equilibrium output (or income, or Y*) and the equilibrium interest rate (r*). More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions ___________________________________________________________ Consider the economy of Hicksonia. 2:30 a. The consumption function is given by: C=200+0.75(Y-T) The investment function is: I=200-25r Government purchases and taxes are both 100. For this economy, graph the IS curve for r changing from 0 to 8 5:30 b. The money demand function in Hicksonia is (M/P)^d=Y-100r The nominal money supply is 1000 and the price level P is 2. For this economy, graph the LM curve for r ranging from 0 to 8 9:00 c. Find the equilibrium interest rate r and equilibrium level of income Y. http://youtu.be/vx6w5JFIjzw d. Suppose that government purchases are raised from 100 to 150. How does the IS curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/b28lsOUFOtw e. Suppose instead that the money supply is raised from 1000 to 1200. How does the LM curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/yBBpE8PzoKU f. With the initial values for monetary and fiscal policy, suppose that the price level rises from 2 to 4. What happens? What are the new equilibrium interest rate and level of income? http://youtu.be/5EPvwarCqDA g. Derive and graph an equation for the aggregate demand curve. What happens to this aggregate demand curve if fiscal or monetary policy changes, as in part (a) and (e)? from Mankiw's Macroeconomics (8th ed) - Aggregate Demand Part 2 (Chapter 12) - Problem 3 ----------------------------------------------------------------
Views: 48914 economicurtis
Shifts in aggregate demand | Aggregate demand and aggregate supply | Macroeconomics | Khan Academy
 
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Factors that might shift aggregate demand Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/v/long-run-aggregate-supply?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/v/aggregate-demand?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 403988 Khan Academy
Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
 
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Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 529444 Khan Academy
Deriving an IS-curve:  Decrease in interest rate
 
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In this question you must derive the IS curve by assuming that the interest rate decreases. You first consider the impact of a decrease in the interest rate on investment, then what impact is has on the goods market and then you use the information plot the points to give you the IS-curve.
Views: 7361 lostmy1