5 IS LM Important Concepts

In these videos, we cover following topics:

IS Curve How do you derive IS curve graphically
IS curve Numerical example
Movement along an IS curve and Shifts in IS curve
Derivation of LM Curve
Movement along an LM curve and Shifts in LM curve Continue reading →

2 Investment, interest rate and Output related concepts

In these videos, we cover following issues

Negative relationship between interest rate and Investment
Positive relationship between output and investment Continue reading →

4 Monetary Policy and Fiscal Policy Comparison issues

In these videos we cover following issues:

Expansionary Monetary Policy and Expansionary Fiscal Policy : Immediate and Indirect effects
Distinction between expansionary fiscal policy
Expansionary Fiscal policy will have less effect
Expansionary Monetary policy will have less effect on output

2 Monetary Policy Concepts

In this series, we discuss major issues like Monetary policy using IS-LM framework and also without using IS-LM framework.

What causes change in the interest rate? How Central bank, with its use of Monetary policy, affects money supply and hence interest rates?

Expansionary Monetary Policy without IS LM Continue reading →

3 Demand and Supply of Money Videos-II

This series of videos is continuation of our previous post

What are the factors affecting demand for money?

When will a person hold money and when will he likes to hold less of it. We discuss these issues in our first video in this series.

Supply of Money is fixed

We will assume that supply of money is fixed. We discuss implications of fixed money supply in our next video

How equilibrium interest rate is determined using demand and supply of money?

In last video of this series, we find how to determine an equilibrium interest rate using demand and supply of money

3 Demand and Supply of Money Videos-I

Why do people demand money? They demand money because they have to make transactions, they demand money because they have to keep some reserve for emergencies, and they also demand money for speculative purposes. We discuss these in detail in our videos.

Then, we derive downward sloping demand curve of money. Demand for money is drawn in interest rate and quantity demanded of money space.

Continue reading →

3 Tax Multiplier Concepts

In our earlier videos, we have seen, first, very generally, how any change in autonomous demand shifts aggregate demand, then , secondly, we saw specifically, how a change in government spending affects aggregate demand and how do you calculate government expenditure multiplier and now, we will look into the effects of a change in lumpsum tax and its affect on aggregate demand.

More specifically, we will cover following three issues in this series

How does the reduction in lump sum tax affects aggregate demand?
How do you calculate taxation multiplier?
Numerical example to calculate taxation multiplier Continue reading →

3 Government expenditure Multiplier videos

These three videos explain the process of affecting aggregate demand using government expenditure multiplier. If government expenditure is increased then how the total demand/output in the economy is affected? This is much similar to our previous blog post, the only difference being, it tackles the issue of government expenditure specifically.

This series of videos discusses following issues related to government expenditure

How an increase in government expenditure affects output?
How to calculate government expenditure multiplier? How can it be depicted graphically?
If an economy is placed at less than full employment level, then how government expenditure multiplier can be used to put an economy back to the full employment level?

Continue reading →