Y1 14) Multiplier Effect and Accelerator

Рет қаралды 312,430

EconplusDal

Күн бұрын

Multiplier Effect and Accelerator Effects - A look at the multiplier effect and accelerator effects in detail

Пікірлер: 136

@mercymulla7536 2 жыл бұрын

7yrs later, this info is still valuable 👏

@AJ5711 Жыл бұрын

It’s not like the economics changes over time big man

@henaz3646 Жыл бұрын

@@AJ5711 last minute paper 3 revision?

@AJ5711 Жыл бұрын

@@henaz3646 ofc 😭😭 u too?

@henaz3646 Жыл бұрын

@@AJ5711 yeah it was haha

@mariaytinexposer 2 ай бұрын

@user-gd6vr9bp1l 4 ай бұрын

8 years on and ur still so helpful

@mikedavies8741 3 жыл бұрын

This is the 2nd of your videos my uni has directed me to. Any confusion I have after reading text vanishes after watching these teaching videos. Excellent¡!

@HaruChinEenu 8 жыл бұрын

This makes soooo much sense now thank you :)

@princessaidski344 4 жыл бұрын

Okay this is the easiest to understand video, thank you for speaking slowly and giving us coherent examples

@sydvertigan3937 9 жыл бұрын

Thank you for your videos! They are really helping me through Economics, really appreciated

@FlixRacing Ай бұрын

Exam in 20 minutes. This will be my last economics exam. Thank you for this beautiful year Mr. Dal❤

@macjarvis2882 Ай бұрын

Micro doesnt need this though

@ceooffunny6872 Ай бұрын

skibdi gyatt

@tlee7028 9 жыл бұрын

You've explained these concepts so well! Thanks!

@elfmas 5 жыл бұрын

8:07 accelerator effect

@madkingiii9765 4 жыл бұрын

yung sam thank you so much

@venuk337 3 жыл бұрын

thanks g

@danish5532 4 жыл бұрын

If you study maths at A-level you can see the multiplier effect is a derived equation from a sum of a geometric series to infinity as the the common ratio in this case is the marginal propensity to consume. Thus the total amount of money at the end can be formed by the equate a/1-r and in this case is it is starting at 100% so a=1

@aryan4170 2 жыл бұрын

I saw the formula and thought: Geometric series

@angelsonny1469 2 жыл бұрын

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@Angel Sonny instablaster ;)

@angelsonny1469 2 жыл бұрын

@Yehuda Watson I really appreciate your reply. I got to the site on google and I'm waiting for the hacking stuff atm. Takes quite some time so I will reply here later with my results.

@angelsonny1469 2 жыл бұрын

@Yehuda Watson It worked and I actually got access to my account again. Im so happy! Thank you so much, you saved my ass!

@SAXOLA_GXULWANA07 8 ай бұрын

Writing tomorrow and you've saved my life, sending love from the University of Cape Town in South Africa.

@micaylefennell9149 Жыл бұрын

Your videos are so helpful! Thank you so much!

@arthurkitts6674 2 жыл бұрын

The information regarding overall everyday functions of society and how business determines everyone way is beyond intriguing. for me I internalize the sensitive nature of our buy, sale and trade world however these lectures has provided intense definition which will only compel my interest to advance in the business sector as I seek to establish my legacy.

@NoDrarx 7 жыл бұрын

Thanks from a german economics student for the easy-to-understand explanations. However you may could have taken more time to explain the accelerator effect rather than the multiplier effect (besides you could have talked about the multiplier effect on tax increase/decrease which would be slightly different: MPC/(1-MPC)). The accelerator effect is pointing out the fact that companies trying to hit a moving target while trying to build up a higher capital stock in order to meet an increased demand. The reason for that is that by investing their money, they increase the AD themself. Followed by further need to build up a higher captial stock and so on... Short: To meet a demand of 1 MU you need to invest >1 MU. All in all: The MAM (Multiplier-Accelerator-Principle) states that, deffered consumer behavior (Ct = C0 + cYt-1) and deducted investitons (based on higher demand) lead to fluctuation. best regards

@hamidtouqir7677 3 жыл бұрын

Your videos helped alot, thanks for making it so easy.......

@rubine24 6 жыл бұрын

thank you very much! very well explained! ^^

@leigh-annjohnson620 3 жыл бұрын

Awesome video, thank you!

@austinwachira5185 4 жыл бұрын

Phenomenal Stuff! Thanks!

@nmkone2207 6 жыл бұрын

Love this explanation.

@binaykumar3025 7 жыл бұрын

very nice way of explaining..... Nice... love it

@jacksyder-mills 9 жыл бұрын

Really interesting video. Thank you.

@ric6383 Жыл бұрын

Well done EconplusDal, a good explanation.

@sidhiramnundun953 4 жыл бұрын

Thanks.. this lesson made me clear

@rudolfsaric173 3 жыл бұрын

Thank you man ! :) pls keep doing what you are doing

@56dragonfly 6 жыл бұрын

great video thank you :)

@elisabethvonolnhausen7079 25 күн бұрын

bless this manTYSM

@TT-bq9yy 4 ай бұрын

Cracking video buddy!!

@ranishkromodoyo 6 жыл бұрын

Ugh finally I got it! I have my cie final exams this may, and its funny that only now I've understood these concepts properly. Thank you

@zoh9728 6 жыл бұрын

Same

@TheRoughjeans 8 жыл бұрын

thank you so much for clearing these concepts. cheers to you!

@alejandrotinjaca6959 2 ай бұрын

this man is the GOAT

@dikshaittoo4846 5 жыл бұрын

Thank you so much. God bless

@dzuvisenuoyongo1652 4 жыл бұрын

Best explanation thank you

@eveningrose8946 Жыл бұрын

Thank you so so so much!

@rohangandhi5230 4 жыл бұрын

You truly are a god

@motivationboost7517 4 жыл бұрын

Legend 🙏🙏

@Blobbyo25 6 жыл бұрын

That t-shirt is trippy

@freddierobinson9587 3 жыл бұрын

does the accelerator effect apply to both government and firm investment?

@StephanieHughesDesign 7 жыл бұрын

Excellent.

@stardust3301 4 жыл бұрын

Thank you

@Hivernal 8 жыл бұрын

thanks this was bugging me for days

@matthewball891 7 жыл бұрын

how do i know when too use classical or keynsian AD/AS diagram?

@techhelper5022 4 жыл бұрын

Opps this comment was posted 2 years ago

@eliopalombi 4 жыл бұрын

Tech Helper oof does anyone know the answer?

@vennhd362 4 жыл бұрын

The Keynesian LRAS will show RGDP increasing and decreasing depending on where you draw the SRAS, whereas the classical LRAS won’t because any shift on the LRAS is just inflationary or deflationary as the productive productive has been achieved.

@fr-it6iw 4 жыл бұрын

@@eliopalombi basically whenever the current state of the economy is involved in the answer. e.g. if economy is near/at full capacity at yf an increase in AD will just be translated into demand pull inflation as price rises and output stays constant at yf.

@shermadkhan5246 7 жыл бұрын

Appreciated

@hussainkyz5070 6 жыл бұрын

Thanks alot sir!

@ofiopo7899 7 жыл бұрын

WHAT Talking U ? LUB U !

@dl0866 9 жыл бұрын

What about the 45 degree Keynesian model?

@oath2502 2 ай бұрын

Thankyou Very useful

@FattestNeek Жыл бұрын

Thank you vikstar

@anindadatta164 Жыл бұрын

The multiplier effect should also depend on the curvature/slope of the supply curve i.e indirectly on the potential economic growth at that point of time.

@andyekumabor2267 10 ай бұрын

Still useful even to this day ❤

@aparna543 5 жыл бұрын

pls explain balanced budget multiplier

@ryanlee7480 2 жыл бұрын

thank you sir

@YashveenaDeviSOOKOYEE Ай бұрын

thank youuuuuu

@realfakebusiness7665 7 жыл бұрын

I have a macro economic policy course tomorrow morning, and I'm confused as to how you calculated the multiplier effect. You're using 1/(1-MPC), could you not use 1/reserve ratio?

@nidabawa4362 5 жыл бұрын

Thats for the credit multiplier! For how banks increase money supply

@drjyotsanalal2613 6 жыл бұрын

Nice explanation of multiplier but I think diagram should be different c+I+I' curve should b indicated to clarify the effect

@bumbfart 8 жыл бұрын

i love you man

@simonma5562 2 жыл бұрын

Should they multiplier be shorter?

@MursalXan 2 жыл бұрын

i am your biggest fan

@nicolidesetages5082 5 жыл бұрын

thanks.

@JunaidAhmad-zh5mg 5 жыл бұрын

Thnx sir... thnx alot...

@user-rm6sn3uu7d Ай бұрын

9 hours im gonna speed run past papers and revision

@elly8588 6 жыл бұрын

Is this not in your year 2 macro book @mohammed Yousuf in the book?

@nas4331 6 жыл бұрын

Charlie Stone it’s AS macro year one

@Frenk33 2 жыл бұрын

No Keynes, no gains 💪

@user-bd2pk5de9c Жыл бұрын

Could you demonstrate the multiplier effect with SRAS as well?

@chiragjampala1929 Жыл бұрын

No classical economists dont believe in a multiplier effect since the economy is always operating at full capacity.

@manovohaitis2538 5 жыл бұрын

within how long ? eternally

@ihbuib 5 жыл бұрын

You look like a good guy

@MidhannAhuja 6 жыл бұрын

man like econplusdal!

@camtilbury2744 5 жыл бұрын

Anyone know how to actually use this concept ??

@zackgluckstein557 2 жыл бұрын

top man

@MrLittledirector 6 жыл бұрын

What is the Multiplier if the MPC =1?

@callumdronfield9045 6 жыл бұрын

infinity

@morganhunt4964 6 жыл бұрын

In theory yes infinity but it’s never really because of taxes, importing, savings ext

@user-bd2pk5de9c Жыл бұрын

Isn’t the MPC the marginal propensity to consume ?

@user-rm6sn3uu7d Ай бұрын

marginal private cost

@millyproductions99 7 жыл бұрын

I'm quite confused at the accelerator effect. What I don't understand is what the makes firms invest in the first place? Do they expect rise in the rate of GDP growth? And vice versa, how would the rate of GDP growth increase when firms are not investing? Would that be in the hands of other factors (such as reductions in corporate tax or income tax etc)? Great video however. So much better than my lessons in college.

@TheRisheee 7 жыл бұрын

Ususally happens during a recovery, so AD is increasing. This increases business confidence, so therefore businesses will be more likely to invest

@ollyurmo2089 3 жыл бұрын

I love you

@gabrielcamargo7617 6 ай бұрын

why does imports decrease the MPC if we're spending?

@213_Ayoub 4 ай бұрын

you’re not spending on domestic goods they’re foreign

@NUTTY-nw4ed 5 жыл бұрын

Whats the difference between National output and GDP?

@nidabawa4362 5 жыл бұрын

its the same!! GDP is the measure of national output. An increase in GDP simply means an increase in (national) output

@phillips7132 5 жыл бұрын

Siiiuuuu

@oneinabillion654 5 жыл бұрын

Hi teacher, why does multiplier decrease when marginal propensity to import rises?

@nidabawa4362 5 жыл бұрын

Increase in leakages(an outflow of money)- imports- reduces the money circulation in the economy hence reduces the multiplier effect

@oneinabillion654 5 жыл бұрын

@@nidabawa4362 oh okay. Thanks!! U replied at right time hahaha. Cie A level eco test in 2 days!

@nidabawa4362 5 жыл бұрын

@@oneinabillion654 same bro!! may we both get an A

@oneinabillion654 5 жыл бұрын

@@nidabawa4362 I'm most worried for Eco P4 although I got 88% for AS lol

@oneinabillion654 5 жыл бұрын

@@nidabawa4362 can I get ur WhatsApp so we can discuss. I have no one to discuss with lol

@jxlly1404 Жыл бұрын

why is the final change in national income not €400 million?

@fredcrowther4291 3 жыл бұрын

3:23 thought he said gunman

@jyotishachetty9044 3 жыл бұрын

How did you get 5

@PK-uj8mp 3 жыл бұрын

1/1-0.8=5. MPC is 80% so 1-0.8=0.2, so 1/0.2=5

@IAmDistractedRn 2 жыл бұрын

8:21 I do the same thing with my lips, I think its an economist thing.

@412lew13ebutuoy Ай бұрын

I love you Krrish’s ❤️❤️😍😍😘😘

@rabihel-habta313 5 жыл бұрын

I was expecting an explanation on the accelerator especially simple and flexible

@aw27.13 2 жыл бұрын

W dal

@cupiddapro1635 7 жыл бұрын

Multiplicand

@vivaancyanide0160 Жыл бұрын

Thanks Vikk!! balle balle

@waggers13 2 жыл бұрын

booga booga bonga bonga

@kshah4361 3 жыл бұрын

Not him summarising and explaining and entire page of the spec (2.4 Edexcel) in just one 10 minute video!

@alexneigh7089 5 жыл бұрын

06:35 - Y1 plus £400m, not £500.

@gmexfficia86 6 ай бұрын

Lol i m watching from india to pass my university exam 😂

@Saiiif 7 ай бұрын

whos basking in the knowledge of econplusdal in 2023!

@jadengunawardena3824 5 жыл бұрын

Are you Jesus Christ? THANK YOU

@x_asa8331 2 жыл бұрын

Thank you so much, my teacher didnt mąkę sense

@1RAGEACE 5 жыл бұрын

the is the big daddy

@grimaliuks 8 жыл бұрын

isn't this wrong? the price level should be constant for the multiplier to take effect

@EconplusDal 8 жыл бұрын

+Paul G No this isn't wrong, no where in the video has the price level been mentioned to be a determining factor of the multiplier. The multiplier works independent of the price level using the process mentioned in the video

@epicwards 8 жыл бұрын

+Paul G Wayyyy

@Aamonnater 8 жыл бұрын

+Paul G Shots fired and recieved

@Enigmo1 8 жыл бұрын

+Paul G kinda confused by what you even mean. in macro, price levels are usually the effects of demand/growth/multipliers, not a cause....i think, lol