@@tobyanderson5360 Yeah of course. You'll obviously build on it with mathematical modelling if you are studying economics or something closely related like finance, but the theory is still relevant.
If I don't get to inject that juicy Ricardian Equivalence as evaluation for economic growth somewhere in tomorrow's macro paper, then was it really worth studying economics 😵?? What a beautiful piece of evaluation oh my lord
Wouldn't inflation be an evaluative point? If the question doesn't specify where inflation currently is, if the economy is below the 2% inflation target than inflation might be good for reaching that target. However if inflation is already low and stable than obviously expansionary fiscal policy would be bad. Thanks.
Just because inflation is low doesn’t render expansionary policy useless. It could be used to increase cyclical unemployment or see a shift out of LRAS
@@mtsl7780 Fiscal policy always relates to aggregate demand. LRAS would be supply-side, but you're right that it would be suitable for short-run economic growth.
@@mtsl7780 Not useless, bad as if inflation was on target, increasing inflation would be bad. Loss of confidence, less investment, unsure of value of money, etc. If inflation was below target for example if there was deflation, expansionary fiscal policy would be good to get it on target.
@@billyfox6368 true but a fiscal policy in the short run can also be a supply side policy in the long run. It more depends on the motive of the policy but it will have effects on both demand and supply of the economy. Less black and white in reality.
When actual economic growth is different to potential economic growth. A negative output gap is when actual economic growth is lower than potential economic growth. A positive output gap is when actual economic growth is higher than potential economic growth. Hope this helps👍
@@kmg55 When factors of production are being used unsustainably. Examples include: Workers working long overtime hours, capital machinery being used beyond it's recommended capacity, and economic growth fueled by excessive debt. It is unlikely to be long term.
Love u daddydal u’ve single-handedly saved my life
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Wildin
I know everyone says this, but, this guy is genuinely one of the main reasons I got a top grade at a level. Cant recomend him enough
every time he does the sucking in of imports effects I laugh…cant get it off my mind now
lol same he actually loves doing it too much 🤣
It works 😂. When I sit in the exam all I hear is econplusdal in my head getting gassed about economics.
I owe my A* back in 2015 to EconPlusDal.
love how you still watch
@@I.Raza24 he updates his videos and deletes the old ones
@@I.Raza24 university probably
@@I.Raza24 or maybe he missed him
This man made my life at University easy.
Is A level economics content still relevant for uni?
@@tobyanderson5360 A level economics is like first year content for uni. So yes.
@@tobyanderson5360 Yeah of course. You'll obviously build on it with mathematical modelling if you are studying economics or something closely related like finance, but the theory is still relevant.
@@thesnackbandit cheers mate. Gonna be studying PPE in october so definetly gonna touch up on my A-level knowledge.
If I don't get to inject that juicy Ricardian Equivalence as evaluation for economic growth somewhere in tomorrow's macro paper, then was it really worth studying economics 😵?? What a beautiful piece of evaluation oh my lord
time to learn ricardian equivalence
Hi @EconplusDal! Its Jay here from Dubai, just thought I'd pop in to say hello and fantastic video as usual.
dal i currently fancy you, thank u sm
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Wouldn't inflation be an evaluative point? If the question doesn't specify where inflation currently is, if the economy is below the 2% inflation target than inflation might be good for reaching that target. However if inflation is already low and stable than obviously expansionary fiscal policy would be bad. Thanks.
Yeah definitely that policy would be pointless if that’s the case
Just because inflation is low doesn’t render expansionary policy useless. It could be used to increase cyclical unemployment or see a shift out of LRAS
@@mtsl7780 Fiscal policy always relates to aggregate demand. LRAS would be supply-side, but you're right that it would be suitable for short-run economic growth.
@@mtsl7780 Not useless, bad as if inflation was on target, increasing inflation would be bad. Loss of confidence, less investment, unsure of value of money, etc. If inflation was below target for example if there was deflation, expansionary fiscal policy would be good to get it on target.
@@billyfox6368 true but a fiscal policy in the short run can also be a supply side policy in the long run. It more depends on the motive of the policy but it will have effects on both demand and supply of the economy. Less black and white in reality.
I love him so much. OMG
Daddy Dal
ayo
Theeefore a better thing to do is for the gov to use a combination of these policies
what is an output gap
When actual economic growth is different to potential economic growth.
A negative output gap is when actual economic growth is lower than potential economic growth.
A positive output gap is when actual economic growth is higher than potential economic growth.
Hope this helps👍
Gap between actual growth and trend growth
@@macauleyburgess5102 how can actual output be higher than potential?
@@kmg55 When factors of production are being used unsustainably. Examples include: Workers working long overtime hours, capital machinery being used beyond it's recommended capacity, and economic growth fueled by excessive debt. It is unlikely to be long term.
@@thesnackbandit ah that makes sense thanks a lot
Very interesting
Do you sell Econ text books?
Yes he does
@@alimmerali2524 how can I buy?
His website
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Bad thing about contsxgionsry fiscal policy is the regressiveness if incressdinh taxes
Nga what?