Connecting the keynesian cross to the IS curve | Macroeconomics | Khan Academy
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Introduction to the Investment/Savings curve
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@PunmasterSTP
7 ай бұрын
How'd your test go?
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Why is the letter Y used so liberally and interchangeably to mean Income, Expenditure, GDP. It confuses what are relatively straight-forward concepts until this notation is introduced
@Sky-lb1lp
2 жыл бұрын
I think it is because it is surrounded by the idea that somebody's spending is somebody else's income. So all in all, it should mean the same thing.
@shrutisharma48
2 жыл бұрын
Y denotes money. Be it income or expenditure. It confused me too and still confuses!
Thank you so much
And what happens to the Keynesian cross when nominal interest rates are negative?
can someone help me A decrease in government spending reduces output more in the Keynesian-cross model than in the IS-LM model. Explain why this is true.
To me the relationship between R and P1 are intuitive like you say, all though showing it mathematically and visually verify that conclusion in my mind. To me the question is how should that real interest rate be regulated? As I know it the current system to regulate the R is an adjustment made by the Federal Bank to adjust the interest rate to induce the market to increase GDP. The idea that makes the most sense, in my limited experience, is to allow the Free Market to influence R, thoughts?
@Alig3388
4 жыл бұрын
If you let GOC/FED do it, they'll just manipulate themselves into a hole...where we are now.
4:01 what does y and t deonites and yp underscore 1 denote in here?
Thank lord you are here to save me
What would happen if real interest rate wanst constant???
Sal keeps referring to the "last video". Does anyone know the name of that video?
@elfmas
4 жыл бұрын
kzread.info/dash/bejne/c4tnxLKaddW7h7g.html
In this explanation, C, G and NX are assumed to be constant right?
@akseldyhr3701
2 жыл бұрын
from my understanding they are asumed to be known - and thereby constant.
literally a 50 min lecture explained in 10 min
4.40, if income is 0 then how we have a positive expenditure intercept? Can anyone explain?
@wangshiyao
4 жыл бұрын
People will still have savings that they can spend. Since people need to at least buy food from each other, spending is a must even at zero income.
I am interested in a theoretical Macroeconomic question. Let's say a country X has very high debt to GDP ratio, and the government uses a policy to reduce that debt. How would we use the IS/LM model to explain the advantages/disadvantages of that policy in short and long run? What policy would you suggest to be used, monetary or fiscal and why ? Thank you !
@juergenmueller4110
5 жыл бұрын
Good question!
@shaochiavang
5 жыл бұрын
The IS/LM model is pretty much for short run economics. Government spending in the short run increases GDP. But in the long run hurts GDP. Why? Bc interest rates will go up which depressed investing and that lowers capital in the long run.
"Cheaply engineered money for the gov't to borrow. vs. higher real inflation" Sorry, but aren't those the same things?
At low interest rate I would not save more because it is not worth it to lend my capital to the bank. I would prefer to spend it whereas keeping it ....
@akseldyhr3701
2 жыл бұрын
correct, that is part of keyns school of thought.
The Austrian school video was quite good but shame you had to get rid of it for no reason. Why explain Keynesian and not describe the alternative (and IMO the better alt)
@wangshiyao
4 жыл бұрын
Oh god thanks for letting us know that Khan Academy conducts its own censorship
🙏🙏
:D
@chosebwt2 何を?
Easily understood........ but when u mentioned "Inventory and surplus.", it add complication to the idea of equilibrium. Avoid using these two words for this simplified video. Afterall, good work.