The MPC, the MPS and the Keynesian spending multiplier

Тәжірибелік нұсқаулар және стиль

We know that an increase in spending will lead to an increase in GDP. But did you know that when one component of AD increases, it will lead to a larger overall increase in AD across the economy? This video introduces the marginal propensities to consume and save and the Keynesian spending multiplier, which allows us to estimate the degree by which a particular change in spending will impact overall GDP in an economy.

Пікірлер: 41

  • @mahiniqbalchowdhury6032
    @mahiniqbalchowdhury60325 жыл бұрын

    This was the best explanation of these topics I've ever heard. Thanks from Bangladesh.

  • @ifnocanheiniken
    @ifnocanheiniken4 жыл бұрын

    Thank you for clearing that cloud of confusion I had. Great video 👍🏽

  • @babitasalam8949
    @babitasalam89495 жыл бұрын

    This is the best explanation!👍Thank you .

  • @mymoodsetter
    @mymoodsetter3 жыл бұрын

    Looks really simple in this video than reading about it. Thanks a lot.

  • @keitho35
    @keitho355 жыл бұрын

    Great video thank you for uploading

  • @wuutchillll
    @wuutchillll4 жыл бұрын

    I love the explanation!! thankyou soo much! now I understand more. God Bless!

  • @SebiPoet
    @SebiPoet3 жыл бұрын

    yo this is hands down the clearest video I found on this, I gotta quiz tomorrow and this is godsend.

  • @xWilled

    @xWilled

    3 ай бұрын

    How's the quiz go

  • @lindacarlen6250
    @lindacarlen62504 жыл бұрын

    Finally I got it! THANKS👍👍👍

  • @yasmintinwala6463
    @yasmintinwala64633 ай бұрын

    Thank you Jason for this

  • @sandyexantus1179
    @sandyexantus11793 жыл бұрын

    thank you so much for this, it was well explained, better than my professor

  • @greypersona4771
    @greypersona4771Ай бұрын

    thank you, this was very clear 🙏🏼

  • @hariduttpanta4616
    @hariduttpanta46164 жыл бұрын

    Thans a lot for your clear explanation easily.

  • @weatherman40
    @weatherman403 жыл бұрын

    and in 10 minutes I got it all well ..thanks for making me understand the multiplier and what it means

  • @emypatrickm.7602

    @emypatrickm.7602

    2 жыл бұрын

    I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

  • @josesitocastorena341
    @josesitocastorena3413 жыл бұрын

    Thank you so much, you really helped me a lot.

  • @yildiz6720
    @yildiz67204 жыл бұрын

    This video helped me alooooot Thankssss🙏🏻

  • @MamoonaIqbal-lb3vi
    @MamoonaIqbal-lb3vi Жыл бұрын

    thank you sooooo much its very helpfuland easy to understand

  • @arien_afrina3073
    @arien_afrina30735 жыл бұрын

    thankyouu so much , very helpful 👍

  • @tatyanagrossett8002
    @tatyanagrossett80022 жыл бұрын

    Thank you man!!

  • @dantheman4011
    @dantheman40114 жыл бұрын

    Doesnt saving cause GDP to expand with a multiplier, or does it only cause Money supply to increase? Banks increase money in circulation which therefore increases GDP I would assume?

  • @ethancbaker2002
    @ethancbaker2002 Жыл бұрын

    So if the mpc increase so does the Keynesian Spending Multiplier????

  • @aliuzair2706
    @aliuzair27063 жыл бұрын

    Thanks alot

  • @emypatrickm.7602
    @emypatrickm.76022 жыл бұрын

    I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

  • @kiky.mp4
    @kiky.mp43 жыл бұрын

    Thank you

  • @studyiaswithvikashranjan8456
    @studyiaswithvikashranjan84563 жыл бұрын

    Good difination sir🙏🙏👍👍

  • @MyteeBumbleBee
    @MyteeBumbleBee3 жыл бұрын

    Your presentation was like a breath of fresh air amongst so many confusing, self-serving videos! My question to you is: how would you calculate the consumption value for the $1,100 income if you only had the initial $700 consumption from which to start work?

  • @emypatrickm.7602

    @emypatrickm.7602

    2 жыл бұрын

    I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

  • @neugabi
    @neugabi3 жыл бұрын

    You are the best

  • @allysttms
    @allysttms6 ай бұрын

    you are my savior

  • @YouCanStartLateAndFinish
    @YouCanStartLateAndFinish3 жыл бұрын

    Omg thank you so much

  • @realdvgarg
    @realdvgarg3 жыл бұрын

    but if we're finding 'k' using the MPS, shouldn't we do [1/(MPS + MPT + MPM)]?

  • @theibphysicsandmathsgod1000

    @theibphysicsandmathsgod1000

    Жыл бұрын

    I think this is a simplified version. But yes, that is correct.

  • @realdvgarg

    @realdvgarg

    Жыл бұрын

    @@theibphysicsandmathsgod1000

  • @nahumkemunto1003
    @nahumkemunto10037 ай бұрын

  • @Charlie-hp2oh
    @Charlie-hp2oh Жыл бұрын

    TOP

  • @klam77
    @klam774 жыл бұрын

    Why do you ignore the Business sector in this analysis? For example, they always tell us the economy is three parts: Y=C+I+G. So you cover the "C" in this video but miss the business savings, ie "profits", no? Companies "spend" on cost of goods sold which come from still other companies and so on and so forth and each company "saves" it's profits....so the profit rate is also like MPS, and your analysis completely IGNORES this, no?

  • @learnecon1539

    @learnecon1539

    4 жыл бұрын

    What is saved in financial institutions comes back to the simple model in form of an injection (investment) which is made by the private sector depending on the consumption behavior (MPC) of an economy.

  • @NALWANIKASamalie
    @NALWANIKASamalie2 ай бұрын

    Hmm

  • @veranyambura3194
    @veranyambura31949 ай бұрын

    You are the best mwalimu🥹

  • @babitasalam8949
    @babitasalam89495 жыл бұрын

    This is the best explanation!👍Thank you .