What shifts the IS or LM curves

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  • Опубликовано: 20 апр 2012
  • 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.freeeconhelp.com/2012/04/w...

Комментарии • 151

  • @gapo7795
    @gapo7795 Год назад +40

    Ten years later you still explaining better than our teachers... thanks man !

  • @chorniycholovichok6
    @chorniycholovichok6 9 лет назад +179

    This is the best explanation of the IS-LM model I've ever seen.

  • @matthewchia1069
    @matthewchia1069 9 лет назад +52

    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.

  • @edwarddyssel8063
    @edwarddyssel8063 6 лет назад +11

    the way this was explained made it seem so simple, thank you!

  • @newbc9806
    @newbc9806 7 лет назад +1

    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

  • @GaluppoBR
    @GaluppoBR 7 лет назад +6

    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!

  • @adamjohnson8934
    @adamjohnson8934 3 года назад +2

    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!

  • @reydag888
    @reydag888 Год назад +3

    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!

    • @itswendyyy0514
      @itswendyyy0514 Год назад +2

      Me right now ahahahahahah, macro exam in 4 days and I am so glad I found this guy.

  • @VinodKumar-yp8gd
    @VinodKumar-yp8gd 4 года назад +4

    Awesome, searching from all the youtube but never found such a great explanation

  • @1pieceisdareasoniliv
    @1pieceisdareasoniliv 8 лет назад +32

    Sweet jesus than you so much
    you've single-handedly saved my major

  • @patrickrdg7286
    @patrickrdg7286 2 года назад +3

    Extremely helpful and informative, thank you so much this has helped me way more than trying to absorb the info in my textbook!

  • @addisonkasper4203
    @addisonkasper4203 6 лет назад +12

    Finally a concise explanation!

  • @zoed.4664
    @zoed.4664 3 года назад

    Thank you so much!!! This concise explanation is far better than the textbook or the lectures. You save my brain nerves!!!!

  • @jenninegovender4391
    @jenninegovender4391 7 лет назад +2

    SO impressed! Such a great video! Exam is on Monday and i feel SO much better!

  • @jaquard05
    @jaquard05 10 лет назад +1

    I really like it. Thank you for keeping it simple and do not listen to the negative comments, you are doing great!

  • @MesoJevlar
    @MesoJevlar 10 лет назад

    First video that makes sense and explaining the different letter that are important

  • @pranay9017
    @pranay9017 10 лет назад +2

    thank u so much. i did well in my exams and i owe it to this video. highly recommended :)

  • @minenhlemthembu5815
    @minenhlemthembu5815 7 лет назад +3

    Writing my macro exam tomorrow, thank you, this definitely helped

  • @SwahiliSpicE
    @SwahiliSpicE 5 лет назад +1

    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.

    • @SwahiliSpicE
      @SwahiliSpicE 5 лет назад +1

      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😄

  • @kevin-gw6dj
    @kevin-gw6dj 4 года назад +3

    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.

  • @derricknavin521
    @derricknavin521 9 лет назад +2

    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....

  • @ZachInman
    @ZachInman 5 лет назад

    Had no idea what this meant. In 10 minutes I totally get it. You're a god.

  • @cbkece
    @cbkece 5 лет назад

    Before I watched this video, I had trouble in this topic. Thank you so much I understand properly ❤️

  • @pendita66
    @pendita66 3 года назад

    I have an exam in 6 hours. Thank you you are a life saver 💕

  • @Oliver2000
    @Oliver2000 Год назад

    11 years later. Thank you for teaching us.

  • @tunadincer9571
    @tunadincer9571 6 месяцев назад

    This couldn't be easier. Thanks a lot

  • @mehmetmikailozten7116
    @mehmetmikailozten7116 6 месяцев назад

    top notch explanation, so good.

  • @studywithokuryazarkiz
    @studywithokuryazarkiz 4 года назад

    This is a life saver for me now, thank you

  • @kickpine
    @kickpine 11 лет назад

    thank you so much! Explained very well in simple form.

  • @rickborgo3616
    @rickborgo3616 9 лет назад +1

    Really good and simple video man

  • @rubanv8439
    @rubanv8439 7 лет назад

    This is made me clear thank you sir,i really owe to you

  • @MrZorkenz
    @MrZorkenz 2 года назад

    Great explanation, thank you!

  • @ehsanullah1634
    @ehsanullah1634 2 года назад

    Sir uniquely explained by you

  • @tweed953
    @tweed953 3 года назад

    Thank you for the clear explanation

  • @maracuja320
    @maracuja320 3 года назад

    Thank you so much! This helps a lot 🍀

  • @harrygroundwater2590
    @harrygroundwater2590 8 месяцев назад +1

    Thanks. Very helpful

  • @emmanuelboadikyei5220
    @emmanuelboadikyei5220 11 лет назад

    thank you for the simple explanation

  • @MR-gr3zf
    @MR-gr3zf 3 года назад

    Excellent explanation sir

  • @zyt9595
    @zyt9595 11 лет назад

    Really helpful! Thank you!

  • @lala8760
    @lala8760 11 лет назад

    Very clear! congratulations

  • @sarapascual8675
    @sarapascual8675 2 года назад

    Very helpful! Thank you!

  • @SanaFarra
    @SanaFarra Год назад

    Thank you from heart 🙏🏻♥️

  • @amnabajaber4090
    @amnabajaber4090 11 лет назад

    thank you,very good presentation.

  • @masahikokimura5817
    @masahikokimura5817 4 года назад

    beautiful stuff mate

  • @lSeKToRl
    @lSeKToRl 11 лет назад

    love this man!

  • @vithiya-8371
    @vithiya-8371 5 лет назад

    saved me right before the exams!

  • @piyushjoshi2647
    @piyushjoshi2647 9 месяцев назад

    Awesome, thank you

  • @lazarusxavier1854
    @lazarusxavier1854 Год назад

    Thank You,Sir.🫡

  • @natwandering
    @natwandering 10 лет назад +2

    awesome, thank you!!!

  • @igor2205igor
    @igor2205igor 4 года назад +1

    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?

  • @YK-jn2kp
    @YK-jn2kp 7 лет назад +1

    you deserve more than just a like and a subscription :)

  • @Jwdhuntify
    @Jwdhuntify 11 лет назад

    Very helpful. Thanks

  • @leighc.9466
    @leighc.9466 3 года назад

    Thank you SO MUCH

  • @sagarsingh1234
    @sagarsingh1234 11 лет назад

    Great job!

  • @A.L.928
    @A.L.928 10 лет назад

    thank you Dom Jagolino!

  • @alexbotetzayas3440
    @alexbotetzayas3440 2 года назад

    amazing video

  • @23mmvideo
    @23mmvideo 2 года назад

    thank you a lot sir!

  • @jwa610
    @jwa610 10 лет назад

    great presentation

  • @bishaldas247
    @bishaldas247 7 лет назад

    thnx sir...u r really awesome...

  • @jamax2155
    @jamax2155 9 лет назад +1

    Thank you sir..

  • @mohammadadnanmirza7319
    @mohammadadnanmirza7319 11 лет назад

    thanks a bunch...helped a lot

  • @foreign514
    @foreign514 11 лет назад +1

    superb explanation....:))

  • @gideonjaape5905
    @gideonjaape5905 5 лет назад +1

    thank you so much

  • @tvvt005
    @tvvt005 2 месяца назад

    1:06 will IS shift due to factors affecting supply like technology improvements or like supply shocks? If so how?

  • @wannabeeish
    @wannabeeish 9 лет назад +1

    what happens if there is a target interest rate.. what is the slope of the LM curve in that case..?

  • @Icecream-dv8oz
    @Icecream-dv8oz 3 года назад

    Thank you !!

  • @kelbifrugia7736
    @kelbifrugia7736 2 года назад

    Thank you so so so much

  • @tinygoof
    @tinygoof 6 лет назад

    Thanks! that was so useful

  • @aceb8219
    @aceb8219 5 лет назад +1

    This video helped so much thank you

  • @chandansingh9795
    @chandansingh9795 3 года назад

    Thanks man👍👍

  • @leocharpentier4412
    @leocharpentier4412 3 года назад

    Thank you !

  • @alaaaqeeqi7084
    @alaaaqeeqi7084 Год назад

    Thank You!

  • @sajjadahmad-ul2hv
    @sajjadahmad-ul2hv 8 лет назад

    thannks,,,simply explained....

  • @Unknown-bc1vq
    @Unknown-bc1vq 8 лет назад +2

    thank you.

  • @yuktithegreat5390
    @yuktithegreat5390 8 лет назад +3

    thank u so very much.... it was really helpful

  • @coolphilip11
    @coolphilip11 11 лет назад

    thanks, helped a lot

  • @juansampieri
    @juansampieri 11 лет назад

    Great! So helpful!

  • @alimohammedjunejo5642
    @alimohammedjunejo5642 4 года назад

    Thankyou sir!

  • @daveco3217
    @daveco3217 3 года назад

    thank you!

  • @fluffybunny3490
    @fluffybunny3490 4 года назад

    Best video

  • @nikolaizaicev9297
    @nikolaizaicev9297 8 лет назад

    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?

  • @mithraismassociation6120
    @mithraismassociation6120 6 лет назад +2

    so gooooodd

  • @xavierhuijts2574
    @xavierhuijts2574 4 года назад

    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

  • @adrienlefebvre6844
    @adrienlefebvre6844 3 года назад +1

    If the marginal propensity to consume changes, wouldnt the slope of the is curve change, rather than the whole curve to be shifted?

  • @kasunmaduranga5489
    @kasunmaduranga5489 4 года назад

    Is there MPC change dose shift the IS curve or here talk about autonomous consumption change shift IS curve

  • @McBirdec
    @McBirdec 11 лет назад

    freaking awesome

  • @dareajayi2563
    @dareajayi2563 11 лет назад

    Thank you.

  • @Tom-js3wc
    @Tom-js3wc 4 года назад

    Thankss bro

  • @Simran-xn7ec
    @Simran-xn7ec 7 лет назад +1

    thankyou can you also explain how is and lm curves get steeper or flatter?

    • @BR3666
      @BR3666 7 лет назад

      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)

  • @sweetsnow6170
    @sweetsnow6170 4 года назад +1

    Thanks

  • @moek6200
    @moek6200 4 года назад +1

    Goodjob

  • @djataberk1
    @djataberk1 6 лет назад +1

    Best!

  • @faisalshallahi1386
    @faisalshallahi1386 10 лет назад

    Great..!!

  • @shainad887
    @shainad887 6 лет назад +1

    god bless you

  • @hal-lr8pw
    @hal-lr8pw 5 лет назад

    Fantastic. A thousand thanks sir.

  • @priyaangadi1213
    @priyaangadi1213 5 лет назад +1

    Thank you for explanation.
    But i m getting confused about why demand for money decreases when price increases?

    • @FreeEconHelp
      @FreeEconHelp  5 лет назад +1

      Things are more expensive so you need more money to buy stuff.

  • @yusufhamza7573
    @yusufhamza7573 6 лет назад +1

    thank you

    • @FreeEconHelp
      @FreeEconHelp  6 лет назад

      Glad to help, good luck with your course!

  • @103488
    @103488 10 лет назад +1

    awesome vid

  • @imranbd8132
    @imranbd8132 11 лет назад

    really, this guy explained nicely. (even as a worst student im also understand everything...:P ) (Y)

  • @dominicburns6684
    @dominicburns6684 Год назад

    Better than the lecturer I'm paying £9k a year for