Keep up the good work sir!! You're making a huge difference in our lives lol us students who literally have to wake up early to go to class and listen to non sense for an hr and go home and watch your videos.
There is an extra determinant of consumption and that is Taxes. Remember the formula for Consumption is C=co+c1(Yd) where Yd is disposable income. The formula for disposable income is (Y-T), therefore the amount of taxes can affect the income of a family and therefore its consumption. Great Video by the way it has helped me a lot.
Thank you for a very nice video! Is it possible for you to link to litterature in relation to this video? I'm writing a bachelor project and i having a hard time finding the determinants that you mention in this video, thank you!
thanks for uploading the video, but there are a lot of problems. 1: he says; if domestic income rise, more forign goods are demanded. and hence import will increase. but that is half-true. it might be the case for some countries like China. where 20 years ago, there were little European goods/services. now there are more, cause Chines income raised. but in some other cases, like Swiss, even if there income go up, the import will not go up, cause people will not desire for forign goods, all best quality good can be bought/produced in SWISS. 2: in 12:25 he says, if foreign income rises, export of a particular nation will increase. lets assume, if the income of Sudan increase, what would that have effect on north Korea? nothing ! if anyone disagree with me please write your argument/explanation. regards
zadran zadrani 1. If incomes in the US rise, people will buy more TVs. Since the US does not produce TVs then imports of TVs will rise. Therefore, it is logical to say that when incomes rise in the US, imports generally will rise. Therefore it is reasonable to say that, all other things equal, if US imports more goods then net exports will fall. 2. This is true for countries that are strong trading partners. If two countries are trading partners, and country B's incomes rise, they will import more goods from country A, all other things (such as currency exchange rates) being equal.
Owen Sechrist that is exceptional what you said. but in economic we do not study exceptional. we study what is normal and usual. and even if what you say is true, it should be in context. like we can say due to nature of US economy, the import or import of certain goods will rise if income of US citizen rise. this is true in case of America, but economic is not the study of American economy alone. what you said is true only for one case not all case.
+zadran zadrani I think you're still missing the underlying principle. Models in economics tend to focus on the resulting change from exactly one other thing changing, hence the term "ceteris paribus" as florence noted. It means "all other things equal", or that ONLY one thing changed and here is the result from that specific change. Obviously, real economies don't work that way, but you can't understand the workings of the complex system without isolating individual changes and understanding how they work. The above example holds in any country. If incomes rise in any country, and that country's citizens consume a product they don't produce, then they will import more of that product, all else equal.
Owen Sechrist I understand the underlying Economic Principle. but, it should be in line with real Economic issues. I believe any subject or Philosophy should bear some practicality and truth to it. no point keep repeating old ideas over and over again, while there is little or no use of it in real life. the issues of raise of income and consumption is also not true even in your example considering " ceteris Paribus" can you compare and apply this principle with Japan and Bulgaria? obviously no ! if Japanese income go up, their consumption increase based on other issues. taste, culture, and the country they have exp/imp with. my point is, based on income solely the consumption does not increase. it well, increase, but that is NOT the reason, it is merely a factor. remember causation and correlation is different thing.
Thanks for the video, it would have been more helpful if you had added the explanation for the relationship between price level and aggregate demand, i.e why AD curve downward sloping.
Shouldn't Incs in taxes also incs Gov Spending since they have bigger budget. But at the same time Incs Taxes means less disposable Income which would reduce the AD. What matters is the Net effect of both. Please clarify Thanks
It's counter-intuitive & ironic that household income & wealth are considered separate things, but they are. For example, consider that "poverty" is defined as being within the bottom 20% of income earners. People can be wealthy & poor at the same time. You can win the lottery & still qualify for food stamps because lottery payments are considered liquid assets, not earned income. Wealth is based on net worth, poverty is based on income...two entirely different things.
Keep up the good work sir!! You're making a huge difference in our lives lol us students who literally have to wake up early to go to class and listen to non sense for an hr and go home and watch your videos.
Can't be explained better than this. Thank you sir you are indeed making a difference in our lives. thank you, we are most grateful!
Thanks for these easy to understand videos, really helps with schoolwork. Keep them coming!
There is an extra determinant of consumption and that is Taxes. Remember the formula for Consumption is C=co+c1(Yd) where Yd is disposable income. The formula for disposable income is (Y-T), therefore the amount of taxes can affect the income of a family and therefore its consumption. Great Video by the way it has helped me a lot.
Thank you so much for this important information btw do we really need to every one of those points on those each element???
I am happy to start macro with Jason-) I finished micro with an straight A on my first year in university-). Thank You Jason.
This helps a lot. I'm up for my exam and the video is treating me well.
Couldn't of been a better video! Informative and excellent, thanks man.
Sir, do you have ppt for this video? It's awesome! Well explained topic. Kudos!
Excellent video, provided me clear understanding of AD
Me too. I didn't understand it before
Thank you very much it helped me a lot with my final exam 😊
succinct summary, excellent job!
WelkerJason, bless you.
You make very good videos. It is very clear. Thank you!
Thank you so much.
You help is well appreciated
this was really nicely put together! thanks
informative and lucid ... well done
Well Explained. Thank You.
great video well explained thank you :)
I love you jason.
thank you for ur post. will help me to sit for my mba econs. paper.
Thank you for a very nice video! Is it possible for you to link to litterature in relation to this video? I'm writing a bachelor project and i having a hard time finding the determinants that you mention in this video, thank you!
Thank u so so much 😭😭😭😭 this really helped me alot
Very thorough
well explained sir but what about keynesian model
well explained... bravo
thanks for uploading the video, but there are a lot of problems.
1: he says; if domestic income rise, more forign goods are demanded. and hence import will increase. but that is half-true. it might be the case for some countries like China. where 20 years ago, there were little European goods/services. now there are more, cause Chines income raised. but in some other cases, like Swiss, even if there income go up, the import will not go up, cause people will not desire for forign goods, all best quality good can be bought/produced in SWISS.
2: in 12:25 he says, if foreign income rises, export of a particular nation will increase. lets assume, if the income of Sudan increase, what would that have effect on north Korea? nothing !
if anyone disagree with me please write your argument/explanation.
regards
zadran zadrani
1. If incomes in the US rise, people will buy more TVs. Since the US does not produce TVs then imports of TVs will rise. Therefore, it is logical to say that when incomes rise in the US, imports generally will rise. Therefore it is reasonable to say that, all other things equal, if US imports more goods then net exports will fall.
2. This is true for countries that are strong trading partners. If two countries are trading partners, and country B's incomes rise, they will import more goods from country A, all other things (such as currency exchange rates) being equal.
Owen Sechrist that is exceptional what you said. but in economic we do not study exceptional. we study what is normal and usual. and even if what you say is true, it should be in context. like we can say due to nature of US economy, the import or import of certain goods will rise if income of US citizen rise. this is true in case of America, but economic is not the study of American economy alone. what you said is true only for one case not all case.
that's why in economics there is a say, "ceteris paribus"
+zadran zadrani I think you're still missing the underlying principle. Models in economics tend to focus on the resulting change from exactly one other thing changing, hence the term "ceteris paribus" as florence noted. It means "all other things equal", or that ONLY one thing changed and here is the result from that specific change.
Obviously, real economies don't work that way, but you can't understand the workings of the complex system without isolating individual changes and understanding how they work. The above example holds in any country. If incomes rise in any country, and that country's citizens consume a product they don't produce, then they will import more of that product, all else equal.
Owen Sechrist I understand the underlying Economic Principle. but, it should be in line with real Economic issues. I believe any subject or Philosophy should bear some practicality and truth to it. no point keep repeating old ideas over and over again, while there is little or no use of it in real life. the issues of raise of income and consumption is also not true even in your example considering " ceteris Paribus"
can you compare and apply this principle with Japan and Bulgaria? obviously no ! if Japanese income go up, their consumption increase based on other issues. taste, culture, and the country they have exp/imp with. my point is, based on income solely the consumption does not increase. it well, increase, but that is NOT the reason, it is merely a factor. remember causation and correlation is different thing.
Great video
Nice vid very helpful!
Very good.
Thank you so so much.
Thanks for the video, it would have been more helpful if you had added the explanation for the relationship between price level and aggregate demand, i.e why AD curve downward sloping.
Shouldn't Incs in taxes also incs Gov Spending since they have bigger budget. But at the same time Incs Taxes means less disposable Income which would reduce the AD. What matters is the Net effect of both. Please clarify
Thanks
Thanks 👏
Thank you
It's counter-intuitive & ironic that household income & wealth are considered separate things, but they are. For example, consider that "poverty" is defined as being within the bottom 20% of income earners. People can be wealthy & poor at the same time. You can win the lottery & still qualify for food stamps because lottery payments are considered liquid assets, not earned income. Wealth is based on net worth, poverty is based on income...two entirely different things.
excellent
thankyou. OH, im using the contents of this video in my essay. Dont worry i am citing and referencing you. I hope that it is fine with you. :)
go to 4:10
go to 3:00
thankkkkkkkkkkkkkkkkkkkkkkkkk youuuuuuuuuuuuuuuuuuuuuuuuu !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
for myself 11:46
Intro Music:
Brad Sucks - Making Me Nervous (I Don't Know What I'm Doing)
cool!!!
ur a beast
The existence of this video kills me on the inside
nice nice nice
go to 3:69
You are sad.
take your problems else where.
Appreciated.
Contemporary ingenious techniques that I blah blah blah blah ball blah bassi blah blah blah BLAH perfection
W
W?
Win