This content or course are much more valuables, I am from Nepal and I am taking the courses of MIT ,this is why mit open course ware is famous for providing equal opportunity of education for everyone ❤
At 38:24 the professor said savings is equal to y minus d minus c but it is written out as an equation on the teleprompter as y multiplied by d minus y equals savings
At 24:00, there’s a mistake in the subtitles. It should be “Y is the real GDP for us.” I believe there’s a second typo that’s much more subtle. I think at 27:47 the subtitles should be, “Now *it increases* output.” It wouldn’t make sense for him to then say that the increased output leads to an increased income as well-which increases output more-if that weren’t the case. I had to rewind that part a couple of times to catch that.
The equation should be: Y= (1/(1-c1)).(c0 - c1.T + I + G) This is because in the previous equation, this was written: c1.(Y-T) and with distributive property it becomes c1.Y - c1.T
I think that is a basic assumption to make the concept easier. Assuming that investment is fixed will help us focus on the effect of output decline more. I think an increase or decrease in investment will also lead to the paradox but not to the extent that output decrease does...
Sorry, the slides for this course are not available. What materials we do have (Readings, Exams with Solutions, Problem Sets with Solutions) are available on MIT OpenCourseWare at: ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/ Best wishes on your studies!
My understanding is it's not derived - an economy does not have to be at equilibrium. That said, economies often tend to equilibrium because if there is more demand than production, production will increase to meet demand. Likewise, if there is more production than demand, production will decrease since there is no need for such high production levels.
Sorry, the slides are not available. What we do have for materials is on MIT OpenCourseWare at: ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/. Best wishes on your studies!
Can c0 move up just due to inflation? Thus creating more autonomous spending and moving Y=Z point? Also, would that this change c1 and thus multiplier (probably) flatting the ZZ line?
MIT ocw, you are great, spreading the light
This content or course are much more valuables, I am from Nepal and I am taking the courses of MIT ,this is why mit open course ware is famous for providing equal opportunity of education for everyone ❤
Thanks so much for this course ❤
Muchas Gracias Profesor Ricardo, apprendi mucho de ti.
At 38:24 the professor said savings is equal to y minus d minus c but it is written out as an equation on the teleprompter as y multiplied by d minus y equals savings
At 24:00, there’s a mistake in the subtitles. It should be “Y is the real GDP for us.” I believe there’s a second typo that’s much more subtle. I think at 27:47 the subtitles should be, “Now *it increases* output.” It wouldn’t make sense for him to then say that the increased output leads to an increased income as well-which increases output more-if that weren’t the case. I had to rewind that part a couple of times to catch that.
You can report this to UA-cam since these are autogenerated subtitles. Under "report" there is an option to flag caption issue.
Report to UA-cam not MIT.
These are gems !!
Thank you Ricardo
Thanks for this wonderful content. Regards from Ecuador
Thank you so much. I am so grateful for all the lectures.
40:00 savings
Thank you so much🙏
Thank u sir, thank u mit❤
The content is very good and easy to understand 😊
can anybody explain what was the typo at minutes 26:20 please ? thankyou
The equation should be: Y= (1/(1-c1)).(c0 - c1.T + I + G)
This is because in the previous equation, this was written: c1.(Y-T) and with distributive property it becomes c1.Y - c1.T
fantastic
thanks from Ukraine, love u so much
3:00
Which book has been used for this course?
Macroeconomics by Olivier Blanchard
the guy with shoes on the chair..
Why is investment is fixed on 41:58?
I think that is a basic assumption to make the concept easier. Assuming that investment is fixed will help us focus on the effect of output decline more. I think an increase or decrease in investment will also lead to the paradox but not to the extent that output decrease does...
Can someone share what literature is useful to read as an addition for better understanding of this lecture?
i just use chat gpt when I dont understand something, it can explain more in details
Is it possible to get the slides for this course?
Sorry, the slides for this course are not available. What materials we do have (Readings, Exams with Solutions, Problem Sets with Solutions) are available on MIT OpenCourseWare at: ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/
Best wishes on your studies!
Day 2 (04-09-2024)
How is the equilibrium condition Z=C derived? Can you explain?
The eqm. condition is Y=Z, not Z=C. This happens at the intersection of abs. demand and the income/production line.
My understanding is it's not derived - an economy does not have to be at equilibrium. That said, economies often tend to equilibrium because if there is more demand than production, production will increase to meet demand. Likewise, if there is more production than demand, production will decrease since there is no need for such high production levels.
What is the meaning of equilibrium in this context? Maybe i missed the part of in the lecture series where he defined it. Am 24 mins in so far
Output is equal to aggregate demand....
Equilibrium condition by the definition is Y or GDP or Output is equal to aggregate spending or demand.
How can we download ppt slides of these lectures?
MIT much?!!!!! screenshot!!!!!! xD
Sorry, the slides are not available. What we do have for materials is on MIT OpenCourseWare at: ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/.
Best wishes on your studies!
👌👌
Can c0 move up just due to inflation? Thus creating more autonomous spending and moving Y=Z point? Also, would that this change c1 and thus multiplier (probably) flatting the ZZ line?
Pretty sure it doesn't since this is a model for REAL GDP therefore the effects of inflation don't impact the model
@@Clorxo that realy makes sense, thank you
İn this model it is assumed that prices don't change, price level is constant.@@Clorxo
But expectation of inflation may increase Co and shift ZZ up and also c1 may get bigger and ZZ line get steeper, slope increases.
Is this quality education????
yes