Macro Problem - Calculate the IS Curve & LM Curve Equations - Equilibrium Interest Rate & Output

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: sites.google.com/site/curtisk...
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~ 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
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Пікірлер: 183

  • @chorniycholovichok6
    @chorniycholovichok69 жыл бұрын

    Very helpful! The fact that you aren't using a touch pen to write on the screen and draw terrible looking graphs makes you an absolute hero. This is a lot more visually appealing. Keep up the good work!

  • @jordynneil3346
    @jordynneil33468 жыл бұрын

    I have taken macro theory for 11 weeks, and your video finally made me understand how to do it all. Just in time for my final, Thank you!!

  • @uroztas
    @uroztas9 жыл бұрын

    cheers better than my lectuerer

  • @liam3807
    @liam38074 жыл бұрын

    I was looking at loads of information to try and understand how to answer these types of questions for my econ exam and this video was the one where I finally got it. Thanks so much!

  • @dominicegun6726
    @dominicegun67267 жыл бұрын

    You are a fucking legend! Man you just saved my ass on a past paper ive been doing for 2 hours. Bro, thank you so much! 5 and a half years later and still changing lives

  • @NyakenyaWairimu
    @NyakenyaWairimu4 жыл бұрын

    Woow! This truly Helped! 2020 7 years later! Good work

  • @alochukwuokolo5845
    @alochukwuokolo58459 жыл бұрын

    Wonderful explanation, what my lecturer 'tried' to explain in 2 hours you explained it in the first 31 seconds, the rest just allowed me to fully understand the concept of IS-LM curves thank you! you should do more topics!!

  • @lindseybreier2684
    @lindseybreier26846 жыл бұрын

    Very helpful and you are great at explaining! Thank you!

  • @CJM-nk5lk
    @CJM-nk5lk8 жыл бұрын

    Very clear & easy to follow - thanks a lot!

  • @jessea.5185
    @jessea.51858 жыл бұрын

    Thanks! Getting ready for a final and this is super helpful

  • @Hariskhanmhariskhan
    @Hariskhanmhariskhan10 жыл бұрын

    made it so simple than text books do, thanks a lot saved my tutorial class!

  • @Hagi123999
    @Hagi12399911 жыл бұрын

    You sir, are a legend. I hope you know that. Thank you very much and have a good day.

  • @economicurtis
    @economicurtis11 жыл бұрын

    wonderful, I'm happy it helps!

  • @noodles7685
    @noodles76858 жыл бұрын

    thank you it was indeed helpful.... it deserves an applause

  • @sasheenmorgan4254
    @sasheenmorgan42547 ай бұрын

    This video was extremely helpful, thank you so much!

  • @economicurtis
    @economicurtis11 жыл бұрын

    At 6:44 I was simplifying the expression. You'll notice that in the second line, there's a 120, a 0.5*(-40), a 100, and a 50, thus 120-20+100+50 = 250. To get the third line, we're just simplifying the expression by combining like terms.

  • @dancanonyango06

    @dancanonyango06

    2 жыл бұрын

    250+0.5y-10r. y=500-20r. How is that possible??

  • @ifeoluwapokolapo9693

    @ifeoluwapokolapo9693

    2 жыл бұрын

    @@dancanonyango06 (Make Y the subject) Y=250+0.5Y-10r, Y-0.5Y=250-10r 0.5Y=250-10r Y=500-20r

  • @shannaentin130
    @shannaentin13010 жыл бұрын

    Thank you for explaining it so clearly. This was extremely helpful. My learning style must match your teaching style.

  • @economicurtis

    @economicurtis

    10 жыл бұрын

    Thank you!

  • @TheGunshot3000
    @TheGunshot300010 жыл бұрын

    exceptional tutorial, very simply explains this concept and is easy to follow.

  • @vegabrink9998
    @vegabrink999811 жыл бұрын

    thank you, such a clear example! very helpful!

  • @VietNguyen-nm6kd
    @VietNguyen-nm6kd Жыл бұрын

    I have been looking for this thing for forever! Thank u for this I'm crying

  • @cihangwang8044
    @cihangwang80448 жыл бұрын

    Thank you very much! This help me a lot with my macro econ homework!

  • @satyajeetdeshpande1837
    @satyajeetdeshpande18374 жыл бұрын

    Thanks a lot Sir for your wonderful explanation. You made the concept crystal clear👍

  • @ultrabrian100
    @ultrabrian10011 жыл бұрын

    I'm working on this problem right now and find this video!! Thanks!!

  • @georgerv
    @georgerv11 жыл бұрын

    Just want to say thanks, this really saved me on Friday, the notes I had made in lectures were useless :P

  • @angelangelov4193
    @angelangelov41933 жыл бұрын

    Great explanation! Thank you very much!

  • @dr.faithadhiambo254
    @dr.faithadhiambo2545 жыл бұрын

    Thanks so much!!! Bravo for the good work

  • @rreinauerreinaue8577
    @rreinauerreinaue857710 жыл бұрын

    This is very helpful. Thanks!

  • @mosestechtalk
    @mosestechtalk5 жыл бұрын

    You're a genius! Great work done 👍👍👍👍👍

  • @reddish10
    @reddish1010 жыл бұрын

    i loved it.. simple and easy to understand.. thanks

  • @economicurtis
    @economicurtis11 жыл бұрын

    Thanks for that!

  • @cartilo2619
    @cartilo26198 ай бұрын

    Superb, very helpful. Thank you so much, still relevant to this day

  • @aristojuan7926
    @aristojuan79263 жыл бұрын

    my instructor skip so many steps while explaining the formula, thats why I was so lose, now I get it. Thank you so much!!!

  • @adnomahad5992
    @adnomahad59928 жыл бұрын

    our lecturer never taught us like this thanks to u I get to know how to calculate I.S and L.M curve

  • @alainrichardmelanbrou8365
    @alainrichardmelanbrou83654 жыл бұрын

    oh Sir you are really the best, in 13 minutes i got all the mechanism, thanks!!!!

  • @yemiabadariki9572
    @yemiabadariki95727 жыл бұрын

    This is awesome. Thank you very much sir.

  • @taturita5189
    @taturita51899 жыл бұрын

    Thnx alot, the example you just illustrated has been of great help.thnx once again

  • @Uzma1110
    @Uzma11102 жыл бұрын

    Thank you so incredibly much!

  • @kijeannie4317
    @kijeannie431710 жыл бұрын

    Thanks this really helped... I swear i have been reading the course material and didn't understand a thing, but this vid really helped thanks again

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    @Felix-iu1by2 жыл бұрын

    very helpful, thank you very much!!

  • @rabeccamwila1314
    @rabeccamwila13142 жыл бұрын

    phenomenal, thanks a billion!

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    @cliffordjohannes90703 жыл бұрын

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    @sebiddekenneth17802 жыл бұрын

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  • @puritysusan3158
    @puritysusan31582 жыл бұрын

    Very elaborate and you made the equistions less " threatening "

  • @thomasward7134
    @thomasward7134 Жыл бұрын

    this was really helpful thanks

  • @taleikaloumaira2065
    @taleikaloumaira20654 жыл бұрын

    thanks for simplifying it so well

  • @bellasima1101
    @bellasima11012 жыл бұрын

    Great explanation. 👍 thank you for helping me understand

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    @martinhamilton19069 жыл бұрын

    Thumbs EFFING UP!!! Thank you

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    @collinswachira110 жыл бұрын

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    @dr.faithadhiambo2544 жыл бұрын

    thank you so much Sir!

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    @architakhan4826 Жыл бұрын

    Nice teaching.. Love it

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    @fredrickkaniaru62457 жыл бұрын

    Very helpful. Thankyou

  • @nonofolechuti3389
    @nonofolechuti33894 жыл бұрын

    very well explained sir. thank you

  • @ohenefleqzy
    @ohenefleqzy11 ай бұрын

    Very helpful thank u very much

  • @ririeretekabu9214
    @ririeretekabu92146 жыл бұрын

    thanks a lot for yr time ...that really helpful.. I can do now this kind of question if it come in the exam .. thanks thanks thanks

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    @ibromusic40972 жыл бұрын

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    @liambates44707 жыл бұрын

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    @wordwords7622 жыл бұрын

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    @mohammedharoub11955 жыл бұрын

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    @alloussmouad98935 жыл бұрын

    thank you so much from morroco

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    @paulineotieno63972 жыл бұрын

    Much appreciated....

  • @economicurtis
    @economicurtis11 жыл бұрын

    You are too kind!

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    @mollamengesha33748 жыл бұрын

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    @GCastro7775 жыл бұрын

    awesome thank you !

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    @MrCraftyGuitar8 жыл бұрын

    you are the most amazing human being to inhabit this earth..... infinitely better than my lecturer! Write your own book :')

  • @study_with_samaa
    @study_with_samaa3 жыл бұрын

    Thank you Sir 🙏

  • @unigrow5855
    @unigrow5855 Жыл бұрын

    Kindly clarify as to which edition of Mankiw’s Macro Economics. Thanks

  • @stephenaidoo3386
    @stephenaidoo33864 жыл бұрын

    Good job weldone!

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    @chathuranganie3 жыл бұрын

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    @martinkiura77272 жыл бұрын

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    @thomastadele34124 жыл бұрын

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    @markmawira24912 жыл бұрын

    this was very useful

  • @manuelechazarra3804
    @manuelechazarra38047 жыл бұрын

    great help!

  • @economicurtis
    @economicurtis10 жыл бұрын

    You're welcome!

  • @jimmyfrankobote9338
    @jimmyfrankobote93382 жыл бұрын

    Very helpful for the learners

  • @umurmad3919
    @umurmad39193 жыл бұрын

    Thanks very helpful

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    @dalkeiththomas93523 жыл бұрын

    really great stuff

  • @daveco3217
    @daveco32173 жыл бұрын

    THANK YOU

  • @mercykiama9208
    @mercykiama92082 ай бұрын

    Very helpful

  • @shubhamchandrakant3144
    @shubhamchandrakant31445 жыл бұрын

    Thanks man

  • @mohamedarabi1257
    @mohamedarabi12573 жыл бұрын

    You saved my day I have been wasting 3 hours repeating so many videos just to understand the final relationship 😂

  • @danglinlego8398
    @danglinlego83987 ай бұрын

    The video is very helpful

  • @batamurizadeborah3741
    @batamurizadeborah37414 жыл бұрын

    so great

  • @mukhtarmahat4131
    @mukhtarmahat41312 жыл бұрын

    I don't know how to thank you I appreciate tomorrow have exam You really saved me 👌👌👌

  • @mustafaozer3578
    @mustafaozer35788 жыл бұрын

    really thanks

  • @ashasmellie1944
    @ashasmellie19445 жыл бұрын

    Super helpful

  • @Moon-ij5ju
    @Moon-ij5ju2 жыл бұрын

    Thank you

  • @abirsarkar7075
    @abirsarkar70757 жыл бұрын

    Could you please show some numerical problems involving the open economy using is -LM model.

  • @majharulislam6184
    @majharulislam61842 жыл бұрын

    I am from Bangladesh. I am really greatfull to you,sir

  • @MyMrwrestling
    @MyMrwrestling10 жыл бұрын

    how do u find price and intrest rate in the long run ? this is the short run right?

  • @realityblooms
    @realityblooms9 жыл бұрын

    wow this is great! 8/8

  • @dinglebeey
    @dinglebeey4 ай бұрын

    Thanks!

  • @economicurtis

    @economicurtis

    4 ай бұрын

    Wow, that is too kind of you dinglebeey! My first super thanks

  • @ariel_og
    @ariel_og2 жыл бұрын

    Thank youu

  • @chepotindartuiiareng4914
    @chepotindartuiiareng49142 жыл бұрын

    thanks a lot

  • @ciramuriuki7966
    @ciramuriuki79663 жыл бұрын

    real life saver 2021

  • @ahmedalfihri
    @ahmedalfihri3 жыл бұрын

    It is really good explanation ❤❤❤

  • @actionthrillromance1701
    @actionthrillromance17015 жыл бұрын

    I have a problem that transaction demand for money and speculative demand for money has been given rather than M & P and the rest of the ques is same. How can I solve this?

  • @tims4283
    @tims42832 жыл бұрын

    Helpful video- thank you 🙏🏽 In a question where the inflation equals to its target 2% and real interest rate is also at 2% and output equals potential at that point. If real interest rate rose by 2% what’s the change in inflation? Also do central bank have to increase interest rate to take the economy back to equilibrium? If yes to what percent should the CB raise interest rates and how can the take the economy back to the 2% inflation target.

  • @sameeradhanushke1272
    @sameeradhanushke12723 жыл бұрын

    You are great

  • @johncena3576
    @johncena35767 жыл бұрын

    At 7:14 why do you double both sides?

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