I have been going back and fourth in different youtube channels, books and lecture notes trying to understand something that you clearly explained in a single sentence. Thank you!
This is one of the best explanation, I am further looking for a point by point explanation, like drawing all the points on the graph, when the consumption increase with the inclusion of autonomous consumption, it should be a straight graph as well parallel to the previous one, how it intersects the consumption graph
lostmy1, at 1:20 you incorrectly say small c is the marginal propensity to consume. The marginal propensity to consume uses INCREMENTS of consumption and income ΔC and ΔY: ΔC/ΔY = mpc ΔC = mpc ΔY It's the average propensity to consume which uses C and Y: C/Y = apc C = apc Y Your consumption function uses C and Y: C = c Y + Cbar C = apc Y So small c must be the average propensity to consume: C = c Y + Cbar C = (C/Y)Y + Cbar C = C + Cbar 0 = Cbar Cbar must equal zero, and your consumption function actually says: C = C consumption equals consumption.
I have been going back and fourth in different youtube channels, books and lecture notes trying to understand something that you clearly explained in a single sentence. Thank you!
Great video on Consumption Function . finally makes sense . Thank you and God Bless !
Helpful and clear. I appreciate that you don't rush or shout, and the graphics are a good support. Thanks
Wow this vedio was uploaded 10 years ago and it is still very useful to understand. Great technique of explaining, hats of to you men :)👍
So helpful...
I have understood this better than the other videos🙏🙏
This was very helpful to me, thanks for producing this!
This is one of the best explanation,
I am further looking for a point by point explanation, like drawing all the points on the graph,
when the consumption increase with the inclusion of autonomous consumption, it should be a straight graph as well parallel to the previous one, how it intersects the consumption graph
See the playlist for Keynesian consumption function without taxesl
Brilliant videos. Can we have more?
LOVE THIS.
Thankssss man you help me alotsssss !
what is this 45 degree line
thank you so much
the autonomous consumption is our savings that we spend or when we consume or spend?
can we have the entire series?
lostmy1, at 1:20 you incorrectly say small c is the marginal propensity to consume.
The marginal propensity to consume uses INCREMENTS of consumption and income
ΔC and ΔY:
ΔC/ΔY = mpc
ΔC = mpc ΔY
It's the average propensity to consume
which uses C and Y:
C/Y = apc
C = apc Y
Your consumption function uses C and Y:
C = c Y + Cbar
C = apc Y
So small c must be the average propensity to consume:
C = c Y + Cbar
C = (C/Y)Y + Cbar
C = C + Cbar
0 = Cbar
Cbar must equal zero,
and your consumption function actually says: C = C
consumption equals consumption.
Thanks