Government spending and the IS-LM model | Macroeconomics | Khan Academy

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

Comments

1. thank u.. :-)
2. Why does an increase in govt.spending increase planned expenditure? Whats the link?
3. if R goes up Y goes down. but if G goes up R goes up and Y goes up? i dont get it
4. Khan Academy, you're using illegal math.
   At 4:06 you show:
   ΔY = (1/(1-mpc)) ΔG
   That's illegal addition: ΔG
   before multiplication by 1/(1-mpc)
   You have to start at ΔG = 0,
   so you can multiply before adding: P-E-MD-AS:
   
   ΔY = (1/(1-mpc)) ΔG
   0 = (1/(1-mpc)) 0 [Start at delta zero]
   0 = 0 [Multiply]
   1 = 1 [Add]
   ΔY = ΔG
5. Could anyone explain....what would happen in the long run?
6. it's really clear and useful! Thanks
7. This is the kind of "economics" I hate. How can government spending increase GDP when you have to decrease people's incomes in order to collect taxes. Ideally you want low taxes but that doesn't CAUSE GDP to go down :/
8. Thank you :") so exciting!
9. Such an amazing video:) Thank you
10. what about investment spending?
11. my stupid teacher should just tell me to watch this video so i wouldnt have to spend half the day in lectures and driving.
12. how come when the real interest rate goes up we have a decrease in the level of GDP/income when we know that real interest rate is the growth rate of purchasing power derived from investment?> i understand we can see from the IS curve what happens but i dont understand why this happens..can anyone explain?
13. I love you!
14. Amazing!
15. Does anyone know what program he uses?
16. I just hit the JACKPOT!!!
17. I watch more than 10 videos a day,
18. When will new video come out?
19. F u
20. Can you please start doing grammar videos, you helped me so much in math that it has now become my favorite subject. I'm having a difficult time passing my English 101 class, I currently have a B in the course but I'm having trouble with impromptu writing. Please thumps up this comment so that maybe he'll see it.