The Multiplier Effect in the AD-AS model

Тәжірибелік нұсқаулар және стиль

Whenever spending increases by households, firms, the government, or foreingers, a country's aggregate demand will increase. However, the total increase in AD will be greater than the initial increase in spending! In this video we'll explain and illustrate how the Keynesian spending multiplier affects real GDP in an economy following an increase in either consumption, investment, government spending, or net exports.

Пікірлер: 12

  • @khadijaouhssain1897
    @khadijaouhssain18973 ай бұрын

    thank you so much for these videos, you saved my life!

  • @mahiniqbalchowdhury6032
    @mahiniqbalchowdhury60325 жыл бұрын

  • @ryu_96
    @ryu_964 жыл бұрын

    Thank you for the good explanation :)

  • @user-jh3kz7dp2z
    @user-jh3kz7dp2z4 жыл бұрын

    If you draw an arrow from AD1 to AD2 and say there is a change of 40billion dollars in aggregate demand, wouldn't that mean that the change from AD to AD2 would be larger than 40 billion?

  • @XAUGEEK

    @XAUGEEK

    2 жыл бұрын

    It should've been 32b

  • @mahadiarian9093
    @mahadiarian90934 жыл бұрын

    isn't k= 1/1-MPS?

  • @user-jh3kz7dp2z

    @user-jh3kz7dp2z

    4 жыл бұрын

    nope k = 1/MPS or k = 1/1-MPC

  • @mahadiarian9093

    @mahadiarian9093

    4 жыл бұрын

    @@user-jh3kz7dp2z hi r u a girl?

  • @edoardocono166

    @edoardocono166

    Жыл бұрын

    @@mahadiarian9093wtf

  • @rashiranka2660
    @rashiranka26604 жыл бұрын

    The writing is so difficult to read.

  • @aleenabatool2315
    @aleenabatool23153 жыл бұрын

    Blur video

  • @akeelmalik7308

    @akeelmalik7308

    2 жыл бұрын

    Disable ur data saving mode