Tax multiplier, MPC, and MPS | AP Macroeconomics | Khan Academy
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- Опубліковано 5 лют 2018
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The spending multiplier and tax multiplier will cause a $1 change in spending or taxes to lead to further changes in AD and aggregate output. The spending multiplier is always 1 greater than the tax multiplier because with taxes some of the initial impact of the tax is saved, which is not true of the spending multiplier. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything ua-cam.com/users/subscription_....
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Sal is the best. I can honestly say that this one man has taught me more than all of my teachers combined. Not to discredit any of my teachers, but that just shows how much knowledge he has made available to the world. I wish I have the chance to thank him in person one day.
Khan Academy, teaching kids Quadratic formula, exponential graphing, and taxes
This guy has taught me more about econ then my graduate level econ professor. Thank you so much for saving me.
Post grad here
Sal! Did you draw them?😱😱😱
your illustrations are very understandable , thank you
amazing video!
Wow! Very few econ teachers derive the equation ❤
thanks sal!
You are the best
U the best 👍🏻 ❤
Why did the tax affect only the initial payment, and not all the reciprocal payments, which followed?
They do. The reciprocal payments are determined by the initial sum minus potential taxes (and levies) multiplied by the multiplier.
why is it -deltaT MULTIPLIED with MPC? why it is a multiplication instead of a subtraction? like, why do we multiply %60 consume ratio with a changeable amount of tax?
What playlist is this?
4
if water is wet💦 is fire lit🔥?
Delta T is change in tax. But govt is not taking away delta T. Government is taking away whole tax. It's not the same. Discrepancy
first
amazingly easy explaination
:)
First
I’m early
the farmer is a she?
you obviously have never visited Communist Russia
everybody's a farmer
Looks like old times British rich person.
It’s a pat
Khan Academy, you're teaching nonsense.
At about 5:00, you have the equation:
x = -Δt * MPC
That's illegal subtraction: -Δt
before multiplication: -Δt times MPC
You can't subtract before multiplying, Dud.
Are you serious?
@@willemvanoranje1533 Yes. You cannot add or subtract before multiplying: P-E-MD-AS. So in the equation: x = -Δt * MPC, you cannot increase or decrease taxes before multiplying. Khan Academy does the same stupid thing at about 3:04, with: output = x (1/(1-mpc)). It would be simpler if he would show the actual equations. Marginal propensities apply to increments, so output = x (1/(1-mpc)) should be written ΔY = ΔC (1/(1-mpc)). You cannot add to consumption and income before multiplying.
@@MrTugwit -Δt doesn't mean you subtract anything (at least not in the way you seem to think it does). All that minus indicates is that if taxes are raised, i.e., a positive change in the t variable, that has a negative result on output (logically), so you put the minus there to let Δt negatively influence output. The order in which you're supposed to perform operations is irrelevant here.
@@willemvanoranje1533 "Are you serious?" If you don't want to use P-E-MD-AS, then don't use math.
Kahn Academy fouled this up by not showing the equations. You can't even tell what he means by "x". Consumption? Investment?
Keynes' original equations from 1936 are simple:
1) ΔY = ΔC + ΔI
2) ΔY = k ΔI
Keynes said that income will increase: ΔY, by a multiple: k, of a government-spent investment increment: ΔI. He showed the marginal propensity to consume 2 ways:
3) ΔC/ΔY
4) 1- (1/k)
Set 1- (1/k) equal to mpc, and you can get:
5) k = 1/(1-mpc)
So Keynes' investment multiplier equation is:
2) ΔY = (1/(1-mpc)) ΔI
Now spend $1 of investment:
1) ΔY = ΔC + ΔI
1 = 0 + 1
2) ΔY = (1/(1-mpc)) ΔI
1 = (1/(1- 0 )) 1
3) ΔC/ΔY = 0/1
4) 1 -(1/k) = 1 - (1/1) = 0
You don't even need Keynes' investment multiplier equation.
ΔI has zero marginal propensity to consume.
And adding to investment before multiplying is legal in equation 2, because multiplying by 1, is not actually multiplying.
And his infinite series is:
1 + mpc + mpc^2 +... = 1/(1-mpc)
1 + 0 + 0 ^2 +... = 1/(1- 0 )
It would be simple, if Khan Academy would show the equations.
what is -1 x 3 😉