Macro Problem - Calculate the IS Curve & LM Curve Equations - Equilibrium Interest Rate & Output

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  • Опубликовано: 14 янв 2025

Комментарии • 183

  • @chorniycholovichok6
    @chorniycholovichok6 9 лет назад +38

    Very helpful! The fact that you aren't using a touch pen to write on the screen and draw terrible looking graphs makes you an absolute hero. This is a lot more visually appealing. Keep up the good work!

  • @jordynneil3346
    @jordynneil3346 8 лет назад +17

    I have taken macro theory for 11 weeks, and your video finally made me understand how to do it all. Just in time for my final, Thank you!!

  • @dominicegun6726
    @dominicegun6726 7 лет назад +3

    You are a fucking legend! Man you just saved my ass on a past paper ive been doing for 2 hours. Bro, thank you so much! 5 and a half years later and still changing lives

  • @liam3807
    @liam3807 5 лет назад +5

    I was looking at loads of information to try and understand how to answer these types of questions for my econ exam and this video was the one where I finally got it. Thanks so much!

  • @Explorer982
    @Explorer982 10 месяцев назад +1

    Thanks!

    • @economicurtis
      @economicurtis  10 месяцев назад

      Wow, that is too kind of you dinglebeey! My first super thanks

  • @uroztas
    @uroztas 9 лет назад +31

    cheers better than my lectuerer

  • @economicurtis
    @economicurtis  12 лет назад +23

    At 6:44 I was simplifying the expression.
    You'll notice that in the second line, there's a 120, a 0.5*(-40), a 100, and a 50,
    thus 120-20+100+50 = 250.
    To get the third line, we're just simplifying the expression by combining like terms.

    • @dancanonyango06
      @dancanonyango06 3 года назад

      250+0.5y-10r. y=500-20r. How is that possible??

    • @ifeoluwapokolapo
      @ifeoluwapokolapo 3 года назад +1

      @@dancanonyango06 (Make Y the subject) Y=250+0.5Y-10r,
      Y-0.5Y=250-10r
      0.5Y=250-10r
      Y=500-20r

  • @NyakenyaWairimu
    @NyakenyaWairimu 4 года назад +4

    Woow! This truly Helped! 2020 7 years later! Good work

  • @shannaentin130
    @shannaentin130 10 лет назад +7

    Thank you for explaining it so clearly. This was extremely helpful. My learning style must match your teaching style.

  • @alochukwuokolo5845
    @alochukwuokolo5845 10 лет назад +3

    Wonderful explanation, what my lecturer 'tried' to explain in 2 hours you explained it in the first 31 seconds, the rest just allowed me to fully understand the concept of IS-LM curves thank you! you should do more topics!!

  • @aristojuan7926
    @aristojuan7926 4 года назад

    my instructor skip so many steps while explaining the formula, thats why I was so lose, now I get it. Thank you so much!!!

  • @Hariskhanmhariskhan
    @Hariskhanmhariskhan 11 лет назад +2

    made it so simple than text books do, thanks a lot saved my tutorial class!

  • @Hagi123999
    @Hagi123999 11 лет назад +1

    You sir, are a legend. I hope you know that.
    Thank you very much and have a good day.

  • @VietNguyen-nm6kd
    @VietNguyen-nm6kd 2 года назад

    I have been looking for this thing for forever! Thank u for this I'm crying

  • @economicurtis
    @economicurtis  11 лет назад +4

    wonderful, I'm happy it helps!

  • @johncena3576
    @johncena3576 7 лет назад +1

    At 7:14 why do you double both sides?

  • @liambates4470
    @liambates4470 8 лет назад +1

    think you just saved my degree mate thanks a lot !

  • @ajaycheema5
    @ajaycheema5 9 лет назад +9

    At 7:19, you subtract 0.5Y from the RHS to bring it to the LHS, why is it not a negative value on the LHS? with the equation of the IS Curve becoming Y=-500 +10r ?

    • @umairahmadmalik
      @umairahmadmalik 9 лет назад +12

      +Ajay Cheema Because there is a Y on the LHS so when you bring the 0.5 Y over it becomes negative but then 1Y- 0.5Y = 0.5Y . Understand?

    • @Medoooooni8
      @Medoooooni8 7 лет назад +2

      @6:49 how did he get 250????????

    • @sharonchepkoech2664
      @sharonchepkoech2664 2 года назад

      @@Medoooooni8 he collected the liked terms I.e 120-20+100+50

  • @georgerv
    @georgerv 12 лет назад

    Just want to say thanks, this really saved me on Friday, the notes I had made in lectures were useless :P

  • @sebiddekenneth1780
    @sebiddekenneth1780 3 года назад

    I love the service...it really gets me ready to solve any macroeconomic problem

  • @alainrichardmelanbrou8365
    @alainrichardmelanbrou8365 4 года назад

    oh Sir you are really the best, in 13 minutes i got all the mechanism, thanks!!!!

  • @reddish10
    @reddish10 11 лет назад +1

    i loved it.. simple and easy to understand.. thanks

  • @analecha7ebek
    @analecha7ebek 12 лет назад +1

    Hi, i find this very helpful. But there is something i don't really understand on 06:44 when you calculate them all together, you get 250? what exactly is it that you calculate together, because i've tried everything and i don't get the same answer as u, its either under 250 or over, so please let me know how you do this. I would appreciate very much, thank u!

  • @ultrabrian100
    @ultrabrian100 11 лет назад

    I'm working on this problem right now and find this video!! Thanks!!

  • @milkerfan3019
    @milkerfan3019 2 года назад +6

    I just failed my test, thanks anyways though.

  • @unigrow5855
    @unigrow5855 2 года назад +1

    Kindly clarify as to which edition of Mankiw’s Macro Economics.
    Thanks

  • @mukhtarmahat4131
    @mukhtarmahat4131 3 года назад +1

    I don't know how to thank you
    I appreciate
    tomorrow have exam
    You really saved me 👌👌👌

  • @kijeannie4317
    @kijeannie4317 11 лет назад

    Thanks this really helped... I swear i have been reading the course material and didn't understand a thing, but this vid really helped thanks again

  • @adnomahad5992
    @adnomahad5992 8 лет назад

    our lecturer never taught us like this thanks to u I get to know how to calculate I.S and L.M curve

  • @mohamedarabi1257
    @mohamedarabi1257 3 года назад

    You saved my day
    I have been wasting 3 hours repeating so many videos just to understand the final relationship 😂

  • @MrCraftyGuitar
    @MrCraftyGuitar 9 лет назад

    you are the most amazing human being to inhabit this earth..... infinitely better than my lecturer! Write your own book :')

  • @noodles7685
    @noodles7685 8 лет назад

    thank you it was indeed helpful.... it deserves an applause

  • @puritysusan3158
    @puritysusan3158 3 года назад

    Very elaborate and you made the equistions less " threatening "

  • @cartilo2619
    @cartilo2619 Год назад

    Superb, very helpful. Thank you so much, still relevant to this day

  • @satyajeetdeshpande1837
    @satyajeetdeshpande1837 4 года назад +1

    Thanks a lot Sir for your wonderful explanation. You made the concept crystal clear👍

  • @raimundomunozvillegas7236
    @raimundomunozvillegas7236 11 лет назад

    THANKSSSS!! I have exam tomorrow, and this will be very helpful!! I suscribe!

  • @sasheenmorgan4254
    @sasheenmorgan4254 Год назад

    This video was extremely helpful, thank you so much!

  • @dr.faithadhiambo254
    @dr.faithadhiambo254 5 лет назад +2

    thank you so much Sir!

  • @TheGunshot3000
    @TheGunshot3000 10 лет назад

    exceptional tutorial, very simply explains this concept and is easy to follow.

  • @CJM-nk5lk
    @CJM-nk5lk 9 лет назад

    Very clear & easy to follow - thanks a lot!

  • @dr.faithadhiambo254
    @dr.faithadhiambo254 5 лет назад +1

    Thanks so much!!! Bravo for the good work

  • @economicurtis
    @economicurtis  11 лет назад +1

    You're welcome!

  • @majharulislam6184
    @majharulislam6184 3 года назад

    I am from Bangladesh.
    I am really greatfull to you,sir

  • @architakhan4826
    @architakhan4826 2 года назад

    Nice teaching.. Love it

  • @_naledi
    @_naledi 2 года назад

    why isn't the equation 0.5Y = -250 + 10r?

  • @hm_techsphere
    @hm_techsphere 5 лет назад

    You're a genius!
    Great work done 👍👍👍👍👍

  • @lindseybreier2684
    @lindseybreier2684 7 лет назад

    Very helpful and you are great at explaining! Thank you!

  • @taturita5189
    @taturita5189 10 лет назад

    Thnx alot, the example you just illustrated has been of great help.thnx once again

  • @angelangelov4193
    @angelangelov4193 3 года назад

    Great explanation! Thank you very much!

  • @rabeccamwila1314
    @rabeccamwila1314 2 года назад

    phenomenal, thanks a billion!

  • @cihangwang8044
    @cihangwang8044 8 лет назад

    Thank you very much! This help me a lot with my macro econ homework!

  • @jessea.5185
    @jessea.5185 8 лет назад

    Thanks! Getting ready for a final and this is super helpful

  • @economicurtis
    @economicurtis  11 лет назад +1

    Thanks for that!

  • @vegabrink9998
    @vegabrink9998 11 лет назад

    thank you, such a clear example! very helpful!

  • @wordwords762
    @wordwords762 3 года назад

    since 2012 and we are here 2021 .... thank you so much

  • @jimmyfrankobote9338
    @jimmyfrankobote9338 2 года назад

    Very helpful for the learners

  • @bellasima1101
    @bellasima1101 2 года назад

    Great explanation. 👍 thank you for helping me understand

  • @Uzma1110
    @Uzma1110 3 года назад

    Thank you so incredibly much!

  • @Felix-iu1by
    @Felix-iu1by 2 года назад

    very helpful, thank you very much!!

  • @MyMrwrestling
    @MyMrwrestling 11 лет назад +1

    how do u find price and intrest rate in the long run ?
    this is the short run right?

  • @alloussmouad9893
    @alloussmouad9893 6 лет назад

    thank you so much from morroco

  • @mohammedharoub1195
    @mohammedharoub1195 6 лет назад

    Nice video...well explained thnk to u

  • @thomasward7134
    @thomasward7134 2 года назад

    this was really helpful thanks

  • @ahmedalfihri
    @ahmedalfihri 3 года назад

    It is really good explanation ❤❤❤

  • @chathuranganie
    @chathuranganie 4 года назад

    Thanks for made my day ❤

  • @martinhamilton1906
    @martinhamilton1906 10 лет назад

    Thumbs EFFING UP!!! Thank you

  • @rreinauerreinaue8577
    @rreinauerreinaue8577 10 лет назад

    This is very helpful. Thanks!

  • @MyMrwrestling
    @MyMrwrestling 11 лет назад +1

    at 11:41 you did -20+20 = 20
    should it not be = to 0 because they cancel out?

    • @economicurtis
      @economicurtis  11 лет назад

      at that timespamp, 20r + 20r = 40r ... I'm not sure I follow?

    • @MyMrwrestling
      @MyMrwrestling 11 лет назад

      economicurtis sorry bro - at 11:37 - the part where u cancel out when finding R

    • @economicurtis
      @economicurtis  11 лет назад

      MyMrwrestling Perhaps I misunderstand, but in that section we're just doing a little algebra, solving for 'r'.
      When you set the LM curve equal to the IS curve and solve for the real interest rate, 'r', you'll have the real interest rate where these two lines intersect. (Which is the "equilibrium interest rate" that we're asked to find in the question)
      Hope that helps!

    • @MyMrwrestling
      @MyMrwrestling 11 лет назад

      economicurtis nice one - really aprreciate the help

  • @mollamengesha3374
    @mollamengesha3374 8 лет назад

    thanks dear to mach , this is so helpful what you have done the hard work to help me!!!!!!!!!

  • @cliffordjohannes9070
    @cliffordjohannes9070 3 года назад

    thank you so much, this was super helpful.

  • @yemiabadariki9572
    @yemiabadariki9572 8 лет назад

    This is awesome. Thank you very much sir.

  • @nonofolechuti3389
    @nonofolechuti3389 5 лет назад

    very well explained sir. thank you

  • @taleikaloumaira2065
    @taleikaloumaira2065 5 лет назад

    thanks for simplifying it so well

  • @ohenefleqzy
    @ohenefleqzy Год назад

    Very helpful thank u very much

  • @economicurtis
    @economicurtis  12 лет назад

    You are too kind!

  • @economicurtis
    @economicurtis  12 лет назад

    I am sorry. I do not know. I have noticed that French universities write nice summaries of the basic models in French and post PDF online (google search with "filetype:pdf" will help find those), but I couldn't tell you anything about french language videos.

  • @thomastadele3412
    @thomastadele3412 5 лет назад

    thanks alot sir . i got much knowledge

  • @danglinlego8398
    @danglinlego8398 Год назад

    The video is very helpful

  • @peterwallace275
    @peterwallace275 3 года назад

    I know I'm eight years late to the party, but this was super helpful.

  • @RicoLamar987
    @RicoLamar987 5 лет назад +1

    Why would we double both sides?

  • @study_with_samaa
    @study_with_samaa 4 года назад

    Thank you Sir 🙏

  • @fredrickkaniaru6245
    @fredrickkaniaru6245 8 лет назад

    Very helpful. Thankyou

  • @ririeretekabu9214
    @ririeretekabu9214 7 лет назад

    thanks a lot for yr time ...that really helpful.. I can do now this kind of question if it come in the exam .. thanks thanks thanks

  • @dalkeiththomas9352
    @dalkeiththomas9352 4 года назад

    really great stuff

  • @stephenaidoo3386
    @stephenaidoo3386 4 года назад

    Good job weldone!

  • @collinswachira1
    @collinswachira1 10 лет назад

    thank you very much..this really helped a lot.

  • @imnotyourfather2866
    @imnotyourfather2866 4 года назад

    Damn i had to log in just to personally give you a like
    This vid helped a lot thanks

  • @pedroguarda7792
    @pedroguarda7792 6 лет назад

    really helpful, thank you

  • @shaktimaharaj8237
    @shaktimaharaj8237 4 года назад

    Hi, are these slides available anywhere to be downloaded?

  • @paulineotieno6397
    @paulineotieno6397 2 года назад

    Much appreciated....

  • @ranaaliraza5678
    @ranaaliraza5678 6 лет назад

    great sir, love from Pakistan

  • @umurmad3919
    @umurmad3919 4 года назад

    Thanks very helpful

  • @Ca222-h4s
    @Ca222-h4s 4 года назад +1

    Suppose Consumption = .6 (Y-T); Investment = 500/r; Real Money Demand = (10Y)/ r; the money supply is 1000 and the Price Level is 2. Let G=T=0.
    a. Find the equation for the IS curve.
    b..Find the equation for the LM curve.
    c. What are the equilibrium values of Y and r?
    d.. Suppose the Fed increases the money supply to 2000. Find the new equilibrium values of Y and r.

    • @sharonchepkoech2664
      @sharonchepkoech2664 2 года назад

      I am getting r as squareroot of -2 .....I doubt my answer

  • @markmawira2491
    @markmawira2491 3 года назад

    this was very useful

  • @abirsarkar7075
    @abirsarkar7075 8 лет назад

    Could you please show some numerical problems involving the open economy using is -LM model.

  • @realityblooms
    @realityblooms 9 лет назад

    wow this is great! 8/8

  • @4487497
    @4487497 9 лет назад

    I want to know how to derive the equation for the AD curve

  • @SaiRam00
    @SaiRam00 Год назад

    Sir Thank You ...Please how did we got IS curve 500-20r

  • @salcap
    @salcap 5 лет назад

    Very helpful

  • @tims4283
    @tims4283 2 года назад

    Helpful video- thank you 🙏🏽
    In a question where the inflation equals to its target 2% and real interest rate is also at 2% and output equals potential at that point. If real interest rate rose by 2% what’s the change in inflation? Also do central bank have to increase interest rate to take the economy back to equilibrium? If yes to what percent should the CB raise interest rates and how can the take the economy back to the 2% inflation target.