What shifts the IS or LM curves
Вставка
- Опубліковано 19 сер 2024
- This video goes over the causes, intuition, and equations behind the possible causes of shifts for the IS and LM curves in the IS/LM model.
Each shift of the IS curve is explained and explored in detail. We also go over the impacts on the graph and the intuition behind it.
The possible shifts for the LM curve are also explored and discussed in detail. Each resulting equilibrium is found and discussed to make sure understanding is clear.
More information about this topic can be found at www.freeeconhel...
![АЛАУДИНОВ у Скабеевой: эти их ВСУ нас НЕ ДОГОНЯТ 😁 [Пародия]](http://i.ytimg.com/vi/an0anqU4WGQ/mqdefault.jpg)
Ten years later you still explaining better than our teachers... thanks man !
This is the best explanation of the IS-LM model I've ever seen.
Instablaster
THANK. YOU. I've been reading a lot on my textbook and I just cannot get the knack of it.. Finally a non-long-winded; straight to the point explanation.
I know that I am 10 years late to the comment section, but I would like to thank you for explaining this so simply. I am a first year PPE student from the UK and your videos are super useful, so thank you!
Me right now ahahahahahah, macro exam in 4 days and I am so glad I found this guy.
Sweet jesus than you so much
you've single-handedly saved my major
the way this was explained made it seem so simple, thank you!
Oh my gosh, I'm on my second shot at taking this class trying to study for my final and this is the first time it has really clicked with me, thank you so much!
Something just clicked the third time I watched this video. It is the best explanation I have seen for the shifts in each curve. And for the IS curve it’s just about looking at how an increase or decrease in C, I, G and NX would affect the Y in the equation. If C increases, then Y needs to increase to balance the equation and the way to represent that on the curve is to shift the curve to the right which shows an increase in Y on the x-axis. Amazing!
For the LM, I get your explanation, it’ makes sense logically. But I’m still trying to remember it in an easier way. The light bulb moment hasn’t hit me yet with this one.
Wow! 👌🏽 got the factors that shift the LM curve now. You are brilliant! it’s just about knowing the parts of the equation and how a change in one part would affect the other side of the equation. I hated economics when I first started studying it almost 9 weeks ago at university (it’s a compulsory module), but now, I am really beginning to warm to it thanks to teachers like you😄
this is by far the best video on the IS-LM curve I've seen. All the others were very confusing and you've given great examples to explain how this damn thing works. Thank you
Awesome, searching from all the youtube but never found such a great explanation
thanks man my textbook is so confusing, i read this section 5 times and couldn't understand it. Your explanation is so simple thank you.
Thank you so much for saving my skin! I had to get back to learning the ISLM model for another subject and yours was very concise and clear!
Finally a concise explanation!
Thank you so much!!! This concise explanation is far better than the textbook or the lectures. You save my brain nerves!!!!
Writing my macro exam tomorrow, thank you, this definitely helped
Extremely helpful and informative, thank you so much this has helped me way more than trying to absorb the info in my textbook!
SO impressed! Such a great video! Exam is on Monday and i feel SO much better!
First video that makes sense and explaining the different letter that are important
Thanks for the help ! FOR LM curves, its better explained by first drawing the liquidity graph and then draw the corresponding LM by merely extending the joint and lines.. Its easier to visualize the movement of liquidity graph than LM curve....
I have an exam in 6 hours. Thank you you are a life saver 💕
11 years later. Thank you for teaching us.
I really like it. Thank you for keeping it simple and do not listen to the negative comments, you are doing great!
thank u so much. i did well in my exams and i owe it to this video. highly recommended :)
Had no idea what this meant. In 10 minutes I totally get it. You're a god.
Better than the lecturer I'm paying £9k a year for
This couldn't be easier. Thanks a lot
Before I watched this video, I had trouble in this topic. Thank you so much I understand properly ❤️
This is a life saver for me now, thank you
Sir uniquely explained by you
If the marginal propensity to consume changes, wouldnt the slope of the is curve change, rather than the whole curve to be shifted?
Thanks. Very helpful
top notch explanation, so good.
Excellent explanation sir
what happens if there is a target interest rate.. what is the slope of the LM curve in that case..?
saved me right before the exams!
you deserve more than just a like and a subscription :)
Thank you from heart 🙏🏻♥️
Really good and simple video man
This is made me clear thank you sir,i really owe to you
thank you so much! Explained very well in simple form.
thank you so much
Thank you for the clear explanation
This video helped so much thank you
Glad it helped!
Thank you! To get it right, if Goverment spending and investments are lower IS curve moves to the left and GDP is lower but interest rate needs to be lower also?
Super helpful, thank you!
1:06 will IS shift due to factors affecting supply like technology improvements or like supply shocks? If so how?
My name is Xavier, I have a test tomorrow and there is one thing left that confuses me.
In your video, you said that the IS curve can shift because in changes of GDP=C+I+G+NX. However, in my book, it says that it can shift due to autonomous expends which are government spending. I would be thankful if you can help me out with this.
Kind regards,
Xavier
Great explanation, thank you!
Thank You,Sir.🫡
Thank you so much! This helps a lot 🍀
thank you for the simple explanation
Awesome, thank you
Thank you SO MUCH
Is there MPC change dose shift the IS curve or here talk about autonomous consumption change shift IS curve
Very helpful! Thank you!
Thanks
Very clear! congratulations
Thank you so so so much
Thank You!
beautiful stuff mate
Thank you !
Thank you for explanation.
But i m getting confused about why demand for money decreases when price increases?
Things are more expensive so you need more money to buy stuff.
thank you,very good presentation.
thank you a lot sir!
amazing video
Thank you !!
better than my professor who has a PHD in economics😂
I have a question which confuses me alot.
So to derivate the IS curve, we use the investment graphic to show that the decrease of %rate, leads to increase of Investment.
And by that the derivate 2 Points of IS curve.
But as in your video, the increase of Investment shifts the IS curve to the right.
And that is the problem, I don`t understand how at one point increase of Investment due to the rate decrease, moves along the IS curve.
And in second case, same increase of Investment shifts the IS curve?
thank u so very much.... it was really helpful
thank you Dom Jagolino!
awesome, thank you!!!
superb explanation....:))
great presentation
thannks,,,simply explained....
Thankyou sir!
thank you!
thnx sir...u r really awesome...
Very helpful. Thanks
love this man!
thankyou can you also explain how is and lm curves get steeper or flatter?
Simran Sinha that's the problem with this video. the IS curve becomes steeper with increase in marginal propensity to consume but here it says that it causes a shift in the curve (it causes only a change in slope)
Thanks man👍👍
Goodjob
Great job!
thanks a bunch...helped a lot
Thanks! that was so useful
You’re welcome!
thank you.
yo but hold up there's no NX in IS-LM model as it assumes a closed economy. In Mundell fleming model trade is introduced
Great! So helpful!
Woooweewww
Thank you sir..
Best video
Fantastic. A thousand thanks sir.
I think there is a mistake made at 6:00 - 6:11 .Cuz if the price goes up , we dont have a decrease in money demand but in money supply .
I know it seems tricky... based on the equations used the result I described is correct. Remember we are keeping money supply fixed and have to explore reasons for the change in liquidity preference.
thanks, helped a lot
really, this guy explained nicely. (even as a worst student im also understand everything...:P ) (Y)
Why does it shift to left and right you didn't explain theory
so gooooodd
Thank you.
At 2:35, "contractionary government policy, say raising taxes or lowering government spending." Maybe I'm all confused in my models, but isn't raising taxes expansionary policy? More taxes -> more money in the hands of the government -> upward pressure on that variable, G. I suppose this relies on a multiplier effect. If the government were to just throw tax money in a fire, raising taxes would lower C and therefore have a negative effect on Y, but otherwise raising taxes should be consider expansionary. Right?
No C is affected by Taxes and he is correct in his explanation. C= 500(some sort of spending that will always have to take place) + C(Y-T) and C is a variable lets just say its actual value is .6 so C=500+.6(Y-T) if T goes up Y-T will be smaller ultimately resulting in a fall in consumption. Now if T goes down which is expansionary Y-T would be greater ultimately making consumption greater.
increase in taxes(decrease in budget deficit) reduces consumers disposable income in the economy. that's why its contractionary, not expansionary(decrease in disposable income reduces demand and output)....
god bless you
thank you
Glad to help, good luck with your course!