Outstanding video. I am a fan of ACDC and You Will Love economics and only discovered your channel now. You knocked this topic out of the park. Thank you for the good work

Great introduction video👍. Just to mention, I think there is a little error arround min 0:20 where you say the production is faster than the selling. I think must be the other way around.👍

I appreciate your video, thank you sir. On another note, I think universities should structure their online classes towards video-based content for those of us who are visual learners and full-time workers. Thanks again.

Thank you Sir,you made me really understand the concept of Key-model

Thanks Arnold, your explaination helped me a lot! Greetings from Egypt.

Thank you, very helpful, very clear.

Really interesting lecture. Thank you!

Great. Just instead of autonomous spending, it should be named autonomous consumption spending, because investment is also autonomous spending here.

Thanks for sharing. It is outstanding!

Thank you so much for this

well explained sir

Thank You for this important class sir .

thank you for this. So clear

thank you sir it's very helpfull

Great class but hard to see the red colour. Thanks

Am finding this very helpful but am getting stuck on how we get to multiplier being 2,5 am getting 0.4 when I calculate like this 1/(1-0.6) gives me 0.4 what else am I missing ? please assist.. thank you

If this is ad curve then what is ae curve And why ad curve is also downward sloping in higher studies

thank you so much!

thank u sir..I got it..

sir,,what do we call multiplier in real life... mathematicall I can understand,,bt theoretically I can not..can u explain by citing an example

ok,,sir,,thank u...bt please do answer..I am waiting,..

3:23 defund the police

arnoldhite, you're teaching deceptive and illegal math. At 4:00 you start talking about the Consumption Function, without showing the equation: C = cY + Co C = cY + AS Co is autonomous consumption, which you call autonomous spending: AS c is what you incorrectly call the marginal propensity to consume. The marginal propensity to consume applies to ΔY, with the result being ΔC: ΔC/ΔY = mpc ΔC = mpc ΔY It's the average propensity to consume that applies to baseline Y, with the result being baseline C: C/Y = apc C = apc Y As shown at 11:08, you're using baseline variables: AS, I, Yf so "c" has to be the average propensity to consume, and autonomous spending therefore must = 0: C = c Y + AS C = (C/Y)Y + AS C = C + AS 0 = AS The consumption function is actually just: C = C. Forgetting that AS must = 0, and C just equals C, and what you say is mpc is actually apc, your multiplier equation is: Y = (1/(1-c)) (AS + I) At 12:19 you have: Y = (1/(1-mpc))(AS + I ) Y = (1/(1-0.6)) (150 + 250) Y = 2.5 * 400 = 1000 [By saying that AS = 150, you've said that 0 = 150] At 13:25, you say there is $200 of extra investment: Y = (1/(1-mpc))(AS + I ) Y = (1/(1-0.6)) (150 + 450) Y = 2.5 * 600 = 1500 That's illegal addition to I before parentheses and multiplication. At 13:42 you ask: "How did it happen that a $200 change initial investment change, caused a $500 change in income?" The answer is: illegal addition before parentheses and multiplication. At about 10:13 you have the equation: ΔY = k * ΔI That's illegal addition: ΔI and ΔY before multiplication. These are Keynes' original two investment multiplier equations, with $1 ΔI: 1) ΔY = ΔC + ΔI 1 = 0 + 1 mpc = ΔC/ΔY = 0 2) ΔY = (1/(1-mpc)) ΔI 0 = (1/(1-mpc)) 0 [Start at delta zero, so you can multiply before adding] 0 = 0 [Multiply] 1 = 1 [Add $1 ΔI] ΔY = ΔI 1/(1-mpc) = ΔY/ΔI = 1/1 = 1 mpc = 0 With legal math: P-E-MD-AS both equations give the same result. ΔI has zero marginal propensity to consume.