The multiplier

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Пікірлер: 18

@anastasiadutkiewicz2909 3 жыл бұрын

Thank you for the new videos. I hope to see the rest of Chapter 4 soon :). It helps me revise a lot!

@EnhanceTuition 3 жыл бұрын

Very happy to be able to help, I'm just finishing a comprehensive video on aggregate expenditure that will go up soon. It's a tougher topic so I wanted to make sure I made it clear to understand.

@anastasiadutkiewicz2909 3 жыл бұрын

@@EnhanceTuition Thank you for your effort, I really appreciate it.

@Dana_chay 3 жыл бұрын

Thank you so much for the lessons!

@EnhanceTuition 3 жыл бұрын

My pleasure!

@antisocialbarbie1587 2 жыл бұрын

Thank you GOSH

@sabbathbaidhya763 3 жыл бұрын

thanks sir

@EnhanceTuition 3 жыл бұрын

I'll be getting at least a few out before then. Some of the aggregate expenditure videos require a lot more time and can't be rushed otherwise I'll be sacrificing quality and giving you a poorly produced video.

@esthernyarko2335 Жыл бұрын

Please if it’s a 3 sector economy, can I use the 1/MPS which is for problem 1

@stronkkid9668 4 ай бұрын

Thanks a lot man your saving lives out here 🫡

@user-ni8rc5hb7f 6 ай бұрын

thank you very much! so as long as the model dose not include international trade, it is a close economy, am I right?

@talha6395 3 жыл бұрын

Multiplier should be 4 in 2nd example. Govt spends 300 benefit gained is (300*4)=1200

@talha6395 3 жыл бұрын

Or u meant to write a ‘further’ increase in 1200 otherwise it means a total increase in consumption by 1200 hence multiplier 4

@willaali413 3 жыл бұрын

In the second problem, i dont get how you calculated you the multiplier. I mean why are we dividing 1500 with 300bn, isn't the formula for multiplier 1/1-MPC or 1/MPW

@EnhanceTuition 3 жыл бұрын

Good question. You can calculate the multiplier by also dividing the change in real GDP by the inital change in spending.

@willaali413 3 жыл бұрын

right, thank you!

@talha6395 3 жыл бұрын

In problem 2 why isn’t the multiplier 4? Like with an investment of 300b, the gain in 1200.

@EnhanceTuition 3 жыл бұрын

The multiplier shows us the overall impact of an increase in spending, which includes the initial expenditure. The multiplier ratio is a ratio between change in real income and the initial injection.