Macroeconomics - The Classical Model I.mp4
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- Опубліковано 12 січ 2012
- Graphical explanation of the Classical model of macroeconomic aggregate supply and aggregate demand, also explaining the rationale for a small role for government in the management of the macro economy.
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You made my day!!! ;)
Outstanding explanation made simple to understand. Thank you for taking the time to make these videos. I am taking Macroeconomics online and understanding the curves without a verbal explanation has been really difficult for me (hence searching youtube for help). Thanks again!
you just saved my life. exam tomorrow- and i'm full confident now that i can explain this model and get good grade. thanks a lot for uploading these videos. next video - i need to understand keynesian model.
Perfect video. My economics teacher did a pretty good job at explaining this, but I needed a good refresher. This video is nearly identical to his last lecture, only you explained it a bit better (he skipped over the part where equilibrium doesn't happen immediately) and in less time, too.
i spend hours reading my boring textbook and hourssss concentrating on my lecture.. but still had no idea what the heck was going on,
but ur videos cleared everything up within minutes
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It's people like you that help me understand this stuff so clearly! Thank you so so much!
You're the best at summarizing and explaining. Thank you!!
I've found this channel accidentally. I must admit that it is absolutely fabulous. It is really rare that short videos contain so much content and are very specific and at the same time attract attention are entertaining. Often valuable materials are boring and one must focus to follow.
Thanks a lot!
What great explanations. I really enjoyed your presentation of the classical model, just wonderful. Thanks so much.
Sir, after 3 days of trying hard to understand this classical model, watching your video make me understand it so easy and clear...thank you.
i understood this better watchingthis video than having my teacher teach my class for the past 3 weeks...great job :)
Thank you for these videos! I've read ahead in my textbook in my AP Macro class and I found your videos to explain the concepts in a more concrete way! Thank you so much!
Thanks a million!!!!!! I really need this for my test next week, thank you, I couldn't have found anything better to clear my misunderstandings :)
This is by far best explanation for the classical model I have ever heard.
incredible i could understand this graphic by the first time thank you man, you're the best!!1
Your videos are so to the point and easy to follow! thank you!
Awesome crystal clear explanation.....!!!!!!! Thank you so much..
This was incredibly useful for my public policy and political science exam. Thank you!!! Subscribed.
I need this for my report. Thank you so much. :)
Cheers from the Philippines!
Thank you so much!! much better than what I'm getting from my lecturer, you're a life saver.
I really enjoyed this explanation! Thanks!
your lessons very helpful Mr. Strickland, you are very good prof
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Great explanation and video
You're videos are the best! Couldn't learn this stuff in my lecture class, let's see how I do on my test tomorrow!
2020, still the perfect video!!! Thank you, sir!!
Do you know the answer to that question in the end of video?
Thank you so much! You have no idea how much I appreciate this!
Thank you for your kind words! You made my day! RS
Awesome. Thank you! You do a much better job at explaining than my teacher does. So helpful.
Awesome video, like the rest you put up - thank you sir!
That's what is teaching. Loved tthe explanation!
Excellent! You make things very clear to understand.
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This is a great video, thanks for posting it.
only 2000 viewers, yet this is very good !
Thank you so much! You saved my macroeconomic exam!
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History proves that government intervention in economic correction always lengthens the duration of the correction. We were already well on our way out of the Great Depression when the Government and Federal Reserve stepped in and destroyed the recovery with Keynesian policies. Also in history, when corrections are long, the entrepreneurial spirit kicks in and new business with new products, services, or old products produced more economically start appearing.
I have watched all most all of your classes; they are just fantastic. Dear sir please keep doing such videos... thank you so much...
Thank you; I appreciate such positive feedback.
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Great! A very simple and good explanation.
Everything now makes sense. Thankyou.
This has helped me a lot! Thank you so much Mr. Strickland
Kind regards all the way from South Africa :)
I'm delighted it helped, Masi. Thanks for the great feedback!
RS
Thank you so much all the way from Jamaica really helped
Thank you sir. thank you. needed this so much. trying to revise basic macroecons as much as i can before my lecturer proceeds with keynesian model after the break.
Brilliantly explained.
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amazing explanation sir, great work .
really helped me studying macro-economics thanks a lot !
The videos have really helped me...thanks a lot
Great stuff ! Thanks .
That was very helpful. thank you, Sir.
Excellent explanation, i loved it , thank u sir
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¡Genio! Excelent explanation!
Thank you so much! It's really helpful :)
Really great work
First, thank you for that explanation. It's the best I've seen so far on aggregate demand. This concept of aggregate demand nonetheless is common sense stuff. Anyhow, the overall result is a total reduction in the living standard of people within the market economy.
Excellent work
Very well explained.
thanks a lot, you have helped me a lot
thanks,you saved my day!
Very helpful, thank you.
Thank you !!! Ready for my Test tomorrow ! (:
In the depression of 1920 (1920-1921) it took roughly 15 months for the American economy to recover (During Wilsons' (Wilson had at the time suffered from several strokes so due to his physical state he couldn't intervene) last mandate and the mandate of Harding), being amongst the quickest and most efficient recoveries in American history.
You may also look at the fact that when this depression was at its worst, it was worse (statistically) than the Great Depression of the 30's.
You sir, you are a great lecturer
very useful and clear : )
Amazing!
This model is great as long as people are not in debt and the workers are all domestic. Debts become larger when wages and prices fall. Debt must be flexible as well in order for this model to work. If debt is not flexible then their lower wages will be used to pay back that debt and goods will not be bought. We then cannot get back to full employment (potential) GPD. Supply will not create its own demand. Also, another point is that many goods are created by third world workers whose wages have always been depressed.
Very well taught and I am glad you acknowledged room for debate as there are a few elements that are not accounted for in that model such as the effect outsourcing production and auto production has on employment rates as well as big business increasingly relying on financial operations to boost profit margins over goods production. The illusion that government does not play a role in the market is misleading as well considering they subsidise corporate activities.
But doesn't it depend on the form of subsidy? If the government is already taxing a business and the supply side economist argue that a subsidy should be given to lessen the tax burden then wouldn't a classical economist agree? If the subsidy is given as a form of protectionist policy I would agree with you however it is not necessarily so if the business is already being taxed at a rate higher than the subsidy.
+Sam Mulder in principle it shouldn't matter, it just shows that free market theory does not fully encompass real life economics. Subsides are a necessity, even when they are not simply rebating taxation.
I'll admit I'm still new to studying economics so my view may be naive however couldn't all of the reasons that necessitate subsidies actually be the cause of either government intervention (such as raising property and corporate tax rates that cause a company to have to outsource to keep a profit) or natural changes in a market such as new more profitable industries taking the place of older less profitable ones? As we have seen in Pittsburgh with the tech business that seem to be taking the place of the steel business that have been pushed out
+Sam Mulder I would agree with that, I think that when you consider the purpose of government you then realise that a truly free market simply can't exist without government potentially failing in their duty to society. Subsidies are just one form of this intervention, even though the motive behind subsides and there eventual outcome maybe questionable. And you're not being naive, in fact you have the right attitude engaging in debate. Economics is as complex a science as any other, and there are far too many stubborn 'economists' who could do with opening their minds. I think the best way to learn is to be proven wrong, I'm constantly doubting myself haha!
Thank you!
Thank You Sir. I have a huge test Thursday and your videos help tremendously. Do you have videos for Keynesian Aggregate Supply and Demand Curves?
When marginal benefit of buyers over exceed what is considered a reasonable profit, the overlap of extended profit reduces on the economic value of society. Thus, minimize on the amount of time the money remain in circulation. And as this process continues, consumer's buying power diminished, which then intensified the means to print and distribute money.
Thank you sir.
much much better than school
love it
that was great.
The public invest their monies in the facilities of the private sector. For that reason, it is the continuous flow of capital in the hands of the public that can guarantee how long markets will remain efficient.
In that respect, the marginal benefit of buyers and the marginal cost of supply must remain in equilibrium with the flow of capital in the hands of the public who foster the need for demand.
Sr. you are awesome, relaxed and clear. Only if you can record these lessons in a better quality and newer versions. A lot of students appreciate this.
Thank you.
Expectations of the future play a major role in the trajectory of the economy. If consensus is that we're heading for a decade long depression, then most likely it will become a self fulfilling prophecy. The fact that expectations matters can be seen through communication from the central bank and the government. They try to build positive expectations because those will keep the economy going. The problems are that irrational expectations create bubbles, which eventually bursts.
Thank you so muchh :)
thank you
That for example is (In my opinion) proof enough that recovery according to the laissez-faire model of economy (Austrian school of economy etc) is far more effective than for example the Keynesian model, where you pump in large amounts of money into dead economies, lowering interests rates, creating investment into the industries, causing a bubble which is ready to burst whenever.
For those of you who are more interested, I'd suggest going to mises.org and start looking around. =)
awesome
Thank you¡
thnks professor
Thanks.
Gracias
And the expectations about the future are powered by the interest rates. Families save so they can spend later. When lots of people save, the interest rates fall, signalling that people are freeing up resources now to claim resources later. The freed resources now are loaned by banks out at a low interest rate to businesses, who invest in projects yielding future returns. In this way, less C means more I. That's the Austrian economic perspective. The market coordinates time with interest.
Markets are efficient when the private and public sector benefit from the exchange of good and services. If the private sector benefit and the public is dissatisfy, markets are not efficient no matter how well the private sector does.
should the vertical axis be price level?
Outstandanding giaogiao!
what does it mean for the economy that we finally meet natural output at a lower price and wage level?
Good
What is the answer to his last question? How long does the economy take to readjust?
The only thing I am confused on/wondering is if wages go down, prices decrease, and people get their jobs back, wouldn't that cause more spending with C,I,G, AND Xn, therefore moving AD2 back to AD1? If not, how/why would AD2 move back to AD1?
Wouldn't the aggregate supply in this case, and in the case of the keynesian model be a long run aggregate supply curve, rather than a normal aggregate supply?
you are god! thank you!
In that case, a reduction on labor capital is not enough because not all the employees within the company will experience this decline in wage. Therefore, government must intervene to assist the companies with low interest rate as a mean to prevent businesses from closing their doors. If government do not do this then all you'll end up with is a recession.
For clarity, shouldn't supply also decrease during depression thus during recovery it increases relative to price falls and increased employment meaning a new equilibrium. He didn't mention that so I'm wondering.
in a true classical model, full employment is assumed. Not an optimum level of employment.