Add everyone's paychecks together in a nation. Because at the same time, we must buy the stuff we produce. Basically math backward. Add profits and NOT margins.
@@shanewhitefeather6298 You are too arrogant. Don't you think UK has technologies too? Actually, US manufacturing stated a few hundred years ago with stolen British textile technology.
After months of mugging up these concepts, I finally know the REAL meaning behind them, and that too, in just one go!! Thank You So Much sir!! Much respect from INDIA xx
Hello, I'm a Vietnamese economics student and your videos really help me significantly in understanding macroeconomics. I love the way you explain the issues, it is very easy to follow. Thank you so much!
@@MarginalRevolutionUniversity Hope to see more new videos from you guys. Would love to see the ethanol scam exposed and how cheaper food could be in the US without it.
Thank you so much! I could not understand the textbook just giving definition that real GDP is "adjusted for inflation". And this was driving me crazy because I could not understand what it meant. Thanks to you!
@@mkm1015 it means using the prices of 2009 to calculate the GDP for every year and then calculating. Let's take a very simple example for a country where GDP is only measured by how much bread is consumed. In 1950 let's say 5 breads were being consumed with each bread of being one cent. So your nominal GDP is 5X 1 cent=5 cents Now let's say in 2010 10 breads are being consumed and each bread costs a dollar. So nominal GDP is 10 dollars for 2010. However as u can see only 5 breads were consumed in extra and the major change is coming because of the price. Hence, a base is taken for these years. Let's take base as 2001, and let's say the price of bread in 2001 as 0.5 dollars. Now u calculate the "Real" GDP of both 1950 and 2010 with the base as 2001: 1950: 5 bread X 0.5 dollar= 2.5 2010: 10 bread X 0.5 dollar= 5 So u see in the video example also just a common price was taken for each year to have a fair comparison.
Yay! I finally found a good source of information that explains nominal vs. real GDP in a clear, easy to understand way. I'm still trying to wrap my head around it, but I just wanted to take a moment and say, great job!!!
I've been trying to understand what the difference is for 2 days now and it's been driving me crazy.1:10 min and I already understand everything. Thank you so much!
Finally an easy and clear explanation between nominal GDP and real GDP. It helps a lot also in understanding the difference between current price and constant price.
Honestly, my Macroeconomics lecturer doesn’t have that good of a voice nor accent. So hearing him is an effort to make let alone understanding him. However, he always puts on your videos for the class, and boom. Understood the whole lecture in an 8-minute video. Your videos are not only clearly explained but visually entertaining😆👍🏻✨
I was watching these videos out of my interest a few years ago, now I am accepted to a university, getting ready for my economy midterms by watching these again.
This video really helped depict the differences between Nominal and Real GDP which has helped my understanding of the two profoundly and including GDP per capita expanded my knowledge on these basic economic vocabulary! Thank you for this channel!
The 4 X standard of living stat is inaccurate and misleading because its the mean not the median. More wealth concentrated in the 1>% doesnt translate into everyone is 4X richer it means the rich are MUCH richer and that brings up the average.
All thanks to neo liberal capitalism, the main factor that makes the GDP often missleading, is does not account for the capital in the financial market nor how much of the capital in a country is in the hands of the 1%, which btw they don’t invest in the economy, 80% of the capital is in commodities and assets like yachts, houses etc... we live in the most unequal economy mankind has ever had
@@angrykidwithinternetaccess9862 yeah, but everyone is richer than before overall (extreme poverty has plummeted by a lot, while a new middle class was created, specially in 3rd world countries who adopted capitalism)
Thank you for providing this. I've had a ton of econ but like the review. More importantly, I've had it since high school and am shocked at how few high schoolers, let alone college students, are ever introduced to these basics of our economy. I see that many are in here, trolling away, spewing myths. I hope they don't vote.
Guys this was so helpful. This video helped me understand my university economics assignment that i was finding really hard. It was awesome and helped a lot :)
I am a forex trader and I have been looking for this, so long a time to help me in my fundamental analysis and finally I have found you!! 😊 Thank you so much
I don’t study economics in university nor did I do it in school, although as a second year student I must say the videos you guys produce are very nice
I have questions. [1] Regarding GDP, how are finished goods produced but sold in different years counted? It seems like GDP is forgetting about the national unsold inventory from year to year. [2] Another question is how does GDP deal with the variation in a product’s price due to its quality. Let’s say we created and sold 250 cars this year and in our country a new car, a cheap chicken, could cost $17,000 or a luxury or sports car could be well over $100,000. Do you just take the average cost of a new car? [3] Lastly, there are some goods/services that over time drop in price or render themselves extinct - something that comes to mind is say the cost of an airline ticket. Now that we have discount airlines and internet pricing, airline tickets seem to have decreased over the years. I was thinking how something like this, while good for the people could shrink the economy - but then I thought that although the ticket is less expensive it just means more people can afford to purchase them, so price may decrease but overall consumption increases. Is that right?
Prices don't even have to necessarily rise. Artificially higher spending does the same. If most of that domestic spending goes overseas, as does dollars, then you won't see an increase in prices domestically Other than that, great vid!
In 2014 group of Chinese experts estimated that of U.S GDP only 27% came from real economy while 73% from fake virtual economy, making money with money. They estimated that U.S real economy growth literally halted after Nixon's shock (August 1971).
the mirage is assuming that prices haven't changed, when in fact they did ! real gdp is useful for measuring growth only. nominal gdp is the only statistic that shows exactly the value for that year, of everything made by an economy.
Sir please read my comment I am from India. The present government in India is boasting of making India a 5 trillion economy. Our former finance minister in the opposition raised a question that that the government seeks for nominal GDP growth or real GDP growth. And I didn't had a clue. Thank-you for explaining so candid for a layman like me
Thank you for making such clear videos to understand these concepts. Curious though, if American GDP per capita is 4x better now then in 1950s is there any measurment for concentration of wealth to explain the incom balance difference from then to now?
Thank you sir. This is the first time I clearly understand the difference between real gdp, nominal gdp, and real gdp per capita. Also, where does GDP (PPP) fall in this picture? Wikipedia shows this for category for countries as well.
you sir could darken the subtitle to make it more readable. Because it is hard to read with that kind of contrast in the background, but over all, thank you for the info this is very useful.
I hated economics but after watching your videos, the subject sparked curosity within me and I find it interesting for now atleast. Thanks a bunch. Maybe thats because how my professor teaches at college that i developed a negative image about the subject.
So, how do you calculate real GDP? That’s what you’ll learn today.
Macroeconomics Course: bit.ly/33Peo4I
Next video: bit.ly/2wImXC7
Add everyone's paychecks together in a nation. Because at the same time, we must buy the stuff we produce. Basically math backward. Add profits and NOT margins.
Dee ko ko in❤ ji ft hu hu hu jinHV@@noel7777noel
Hello, i am a Chinese student who study in UK. Your video with Chinese capation is really helping me to pass the economic test. Thank you!
Desmond Yuan same! Chinese studying in UK!
Which university?
Hey Desmond ... you're not coming to the U.S. and stealing our tech property? Just kidding, LOL
@@shanewhitefeather6298 You are too arrogant. Don't you think UK has technologies too? Actually, US manufacturing stated a few hundred years ago with stolen British textile technology.
@@vikalpchauhan1753 Why cannot a Chinese pass English skill test like IELTS? I passed it too.
After months of mugging up these concepts, I finally know the REAL meaning behind them, and that too, in just one go!! Thank You So Much sir!! Much respect from INDIA
xx
Isko 52÷14 nhi aata 😂
@Nihilistic Atheist ha ha ha ha ha 😇
Hello, I'm a Vietnamese economics student and your videos really help me significantly in understanding macroeconomics. I love the way you explain the issues, it is very easy to follow. Thank you so much!
Great to hear!
-Roman
ay yuhfuski
Hi there, hope more vietnamese know about this series and can help our country stronger in the future🥰🥰
I’m here cause I don’t understand shit from my teacher
Yes! Same.
Your teacher is dumbing u down
my teacher made me watch this 3 times FIRE HIM
@Holy Electrum It's exactly because colleges can't fire some professors that they dare to fool their students.
@@daoqizhong1219 we're taking this up in highschool. _-_
You taught us this topic in a less then 10 min , and our teacher spent 1 hour .. Thankyou for amazing lecture. :)
MRU is AWESOME! Hopefully their efforts reach many.
+Jason McPhee Thank you!
@@MarginalRevolutionUniversity Hope to see more new videos from you guys. Would love to see the ethanol scam exposed and how cheaper food could be in the US without it.
Thank you so much! I could not understand the textbook just giving definition that real GDP is "adjusted for inflation". And this was driving me crazy because I could not understand what it meant. Thanks to you!
Glad we could help, Eunice! :D -Meg
Thank you sir. It is crystal clear now.
Glad we could help, Mehedi! -Meg
@Mr. P. EnisI could be wrong but may the person replied have that name 'Meg' .
What does it mean to use 2009 prizes to determine, let's say, GDP per capita in 1983?
I'm dumb
@@mkm1015 good question.
@@mkm1015 it means using the prices of 2009 to calculate the GDP for every year and then calculating.
Let's take a very simple example for a country where GDP is only measured by how much bread is consumed.
In 1950 let's say 5 breads were being consumed with each bread of being one cent. So your nominal GDP is 5X 1 cent=5 cents
Now let's say in 2010 10 breads are being consumed and each bread costs a dollar. So nominal GDP is 10 dollars for 2010.
However as u can see only 5 breads were consumed in extra and the major change is coming because of the price. Hence, a base is taken for these years. Let's take base as 2001, and let's say the price of bread in 2001 as 0.5 dollars.
Now u calculate the "Real" GDP of both 1950 and 2010 with the base as 2001:
1950: 5 bread X 0.5 dollar= 2.5
2010: 10 bread X 0.5 dollar= 5
So u see in the video example also just a common price was taken for each year to have a fair comparison.
This made everything make so much more sense. Thank you!!
I have to say thank you, sir. You have helped me a lot with my school project
You're welcome, Nathanael! Glad we could help. -Meg
This channel must grow so well, there is really valuable content here!
Yay! I finally found a good source of information that explains nominal vs. real GDP in a clear, easy to understand way. I'm still trying to wrap my head around it, but I just wanted to take a moment and say, great job!!!
Thank you! Practice helps - go here: www.mruniversity.com/practice-questions/nominal-vs-real-gdp-practice-questions
-Roman
I've been trying to understand what the difference is for 2 days now and it's been driving me crazy.1:10 min and I already understand everything. Thank you so much!
This and the Solow explanation made everything clear! Heros!
Simply great. With prof's like you Economics not only gets easy but interesting as well. Thanks :)
Why is this channel so underrated?
Finally an easy and clear explanation between nominal GDP and real GDP. It helps a lot also in understanding the difference between current price and constant price.
Honestly, my Macroeconomics lecturer doesn’t have that good of a voice nor accent. So hearing him is an effort to make let alone understanding him. However, he always puts on your videos for the class, and boom. Understood the whole lecture in an 8-minute video. Your videos are not only clearly explained but visually entertaining😆👍🏻✨
It's exceptional, Sir. You help me to understand things that I've confused for years. Thanks a lot.
I was watching these videos out of my interest a few years ago, now I am accepted to a university, getting ready for my economy midterms by watching these again.
I was so confused about this concept that you explained in 7 minutes. Thank you. Great video, great explanation
After I watch this, I really love FRED. Thank you to This channel and FRED.
I love how clear your videos are, without unnecessary jargon. Thank you!
You are so welcome!
-Roman
I absolutely love your videos on both micro and macroeconomics. Thank you so much for creating them!
More to come! Thank you!
-Roman
I only have a very basic understanding of economics but this video makes every concept crystal clear.
I missed my economics class but am glad I started to watch your videos.
This video really helped depict the differences between Nominal and Real GDP which has helped my understanding of the two profoundly and including GDP per capita expanded my knowledge on these basic economic vocabulary! Thank you for this channel!
You're very welcome!
-Roman
Wow Thank you! i have my economics prelim tomorrow! and just cant get anything into my head but this helped my understanding of GDP
Good luck, Annabel! -Meg
I know it’s a bit late, however, thank u soo much!
The 4 X standard of living stat is inaccurate and misleading because its the mean not the median. More wealth concentrated in the 1>% doesnt translate into everyone is 4X richer it means the rich are MUCH richer and that brings up the average.
What does it mean to use 2009 prizes to determine, let's say, GDP per capita in 1983? Can you give an example?
I'm dumb
Yeah that's explained in the next video. You should have watched it first before commenting.
All thanks to neo liberal capitalism, the main factor that makes the GDP often missleading, is does not account for the capital in the financial market nor how much of the capital in a country is in the hands of the 1%, which btw they don’t invest in the economy, 80% of the capital is in commodities and assets like yachts, houses etc... we live in the most unequal economy mankind has ever had
good point. thank you
@@angrykidwithinternetaccess9862 yeah, but everyone is richer than before overall (extreme poverty has plummeted by a lot, while a new middle class was created, specially in 3rd world countries who adopted capitalism)
Thank you for providing this. I've had a ton of econ but like the review. More importantly, I've had it since high school and am shocked at how few high schoolers, let alone college students, are ever introduced to these basics of our economy. I see that many are in here, trolling away, spewing myths. I hope they don't vote.
Great explanation. Made everything simple to understand. Thank you sir.
Hope I can pass my economic exam~Thank you for your videos~
Good luck! -Meg
Lol I have mine in 9 hours 😀
Thank you sir, now i can understand. This is such a good and creative explanation
I'm a science background student , your videos help me a lot to understand the topics clearly !
Clear explanation with an example , although books are just giving us only definition and you are the best of explaining it.
This is one of the best videos I have seen on this subject. So clear! Wow
Guys this was so helpful. This video helped me understand my university economics assignment that i was finding really hard. It was awesome and helped a lot :)
Very useful video... difficult concepts explained very nicely and easily... big thumps up for this video
I am a forex trader and I have been looking for this, so long a time to help me in my fundamental analysis and finally I have found you!! 😊 Thank you so much
Greatly appreciate this initiative by MRU. Helped me and innumerable others in understanding this subject and passing our courses.
I am an Indian I'm using this knowledge for exam and am not thirsty to attain it
i've learned more in 7.40 minutes then in one whole chapter of school, thanks MRU!
I don’t study economics in university nor did I do it in school, although as a second year student I must say the videos you guys produce are very nice
thank you so much for making this, i've just found your channel and your videos are like the savior of my life ngl!!!
My Gawwwwd! Thank you! I couldn't understand it til now!
I have questions. [1] Regarding GDP, how are finished goods produced but sold in different years counted? It seems like GDP is forgetting about the national unsold inventory from year to year. [2] Another question is how does GDP deal with the variation in a product’s price due to its quality. Let’s say we created and sold 250 cars this year and in our country a new car, a cheap chicken, could cost $17,000 or a luxury or sports car could be well over $100,000. Do you just take the average cost of a new car? [3] Lastly, there are some goods/services that over time drop in price or render themselves extinct - something that comes to mind is say the cost of an airline ticket. Now that we have discount airlines and internet pricing, airline tickets seem to have decreased over the years. I was thinking how something like this, while good for the people could shrink the economy - but then I thought that although the ticket is less expensive it just means more people can afford to purchase them, so price may decrease but overall consumption increases. Is that right?
I am student from India. I am learning Economics to pass my examination. Thank you for clearing my concept.
Many grazie for your vids from Italy.
This helped a lot with my business class, thanks!
Thank you sir I appreciate your work a lot. You're doing good
A very good lesson..cleared out so many perplexing doubts
just love it the way you explained so easily
Prices don't even have to necessarily rise. Artificially higher spending does the same. If most of that domestic spending goes overseas, as does dollars, then you won't see an increase in prices domestically
Other than that, great vid!
Very useful and good explanation. Thank you
This is perfect! Thank you so much!
This is amazing, so much more innovative and creative way of teaching. Thanks MRU
So my friend.
This is for what internet was invented...!!!
Spread of knowledge🌹
YOU ARE AMAZING. Thank you for these videos
I am an Indian I am not using this knowledge for exam but I am thirsty to attain it☺
true bhai. this surely helps
@@soumyajyotisarkar we Indians love to boast about our gdp but it is nothing.
no name Did he even say that smartass?
@@shubhamvyas3192 i am talking about pseudo patriots in the internet
Acquire it, not attain it.
This is a great video! My professors never explained stuff this clear
I'm glad i stumbled in to this channel. I already subscribed
Awesome video thanks for this video sir.
In 2014 group of Chinese experts estimated that of U.S GDP only 27% came from real economy while 73% from fake virtual economy, making money with money. They estimated that U.S real economy growth literally halted after Nixon's shock (August 1971).
That’s false
Love it. Thank you so much for your sharing
These videos are truly amazing
the mirage is assuming that prices haven't changed, when in fact they did ! real gdp is useful for measuring growth only. nominal gdp is the only statistic that shows exactly the value for that year, of everything made by an economy.
Thank you sir you just made me pass my Mock exams 👍👊
Sir please read my comment
I am from India. The present government in India is boasting of making India a 5 trillion economy.
Our former finance minister in the opposition raised a question that that the government seeks for nominal GDP growth or real GDP growth. And I didn't had a clue. Thank-you for explaining so candid for a layman like me
Thank you for making such clear videos to understand these concepts. Curious though, if American GDP per capita is 4x better now then in 1950s is there any measurment for concentration of wealth to explain the incom balance difference from then to now?
Very informative. Thanks for the upload 👍
Best Video On Economics I've Ever Watched , I Wish There Be Some Good Teachers Like You In Other Fields Too! :)
I love your educational videos. Ty.
these videos are saving lives
Thank you sir. This is the first time I clearly understand the difference between real gdp, nominal gdp, and real gdp per capita. Also, where does GDP (PPP) fall in this picture? Wikipedia shows this for category for countries as well.
Nobody uses ppp that’s why it’s not mentioned
you sir could darken the subtitle to make it more readable. Because it is hard to read with that kind of contrast in the background, but over all, thank you for the info this is very useful.
Wow I’ve been trying to find this out for months and within minutes of watching this video, I fully understand what they mean!
I hated economics but after watching your videos, the subject sparked curosity within me and I find it interesting for now atleast. Thanks a bunch. Maybe thats because how my professor teaches at college that i developed a negative image about the subject.
I am from Indonesia, my background education is psychology but I am interested in economic. I never miss to watch your video.
You got me hooked, man.
Understood at just 2 minutes...Thanks!!!!!
That was real simple and helpful sir.
Amazing explanation loved it
best video I have ever seen for macroeconomy
Couldn't have been explained better👍
Worthy Lecture 👌👌👌....I have Ever Seen🥰
This is very helpful. How can we distinguish Services from Manufactured Goods?
Anyone else here during quarantine!?! this is better than ASMR.
Thank you so much it is so much useful...please make more videos on Indian Economy also.
Thank you for your comment! Have you seen our India playlist?
ua-cam.com/play/PL-uRhZ_p-BM6qwTvoo09a3ZB2WuZNQtr8.html
-Roman
Thanks for doing what Khan Academy can’t - give actual examples and clear definitions, while avoiding math problems.
Good walkthrough. Thanks!
Sir, you've earned another subscriber.
Beautifully explained !
Very nice explanation
Very well explained. Thanks 🙏🏻.
thank u for existing i love u
Thanks for helping out with my econ class!
I do love your videos guys
Thanks for the videos. they are really amazing and help students a lot.
Great to hear!
-Roman