Tax multiplier, MPC, and MPS | AP Macroeconomics | Khan Academy

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The spending multiplier and tax multiplier will cause a $1 change in spending or taxes to lead to further changes in AD and aggregate output. The spending multiplier is always 1 greater than the tax multiplier because with taxes some of the initial impact of the tax is saved, which is not true of the spending multiplier. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything www.youtube.co....
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AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!
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5 окт 2024

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Комментарии : 44

@borisdorofeev5602 6 лет назад

Sal is the best. I can honestly say that this one man has taught me more than all of my teachers combined. Not to discredit any of my teachers, but that just shows how much knowledge he has made available to the world. I wish I have the chance to thank him in person one day.

@alexlanglois1975 5 лет назад

This guy has taught me more about econ then my graduate level econ professor. Thank you so much for saving me.

@sidrahbilal3877 Год назад

Post grad here

@lunch7213 6 лет назад

Khan Academy, teaching kids Quadratic formula, exponential graphing, and taxes

@sanjanasupriya3264 6 лет назад

Sal! Did you draw them?😱😱😱

@jonathanametso Год назад

your illustrations are very understandable , thank you

@saaranshagarwal3334 Год назад

Wow! Very few econ teachers derive the equation ❤

@souravkumarmusib9742 11 месяцев назад

amazingly easy explaination

@alex_8704 6 лет назад

Why did the tax affect only the initial payment, and not all the reciprocal payments, which followed?

@Aluinus 4 года назад

They do. The reciprocal payments are determined by the initial sum minus potential taxes (and levies) multiplied by the multiplier.

@jjune2653 6 лет назад

thanks sal!

@BooksInShort22 Год назад

U the best 👍🏻 ❤

@jehancharle 5 лет назад

amazing video!

@osaskeys7316 3 года назад

You are the best

@pinkocean17 4 месяца назад

why is it -deltaT MULTIPLIED with MPC? why it is a multiplication instead of a subtraction? like, why do we multiply %60 consume ratio with a changeable amount of tax?

@sumanchowdhury6162 2 года назад

Delta T is change in tax. But govt is not taking away delta T. Government is taking away whole tax. It's not the same. Discrepancy

@SBEMTv 6 лет назад

What playlist is this?

@rubyroobster923 6 лет назад

if water is wet💦 is fire lit🔥?

@saleemshaikh4981 4 года назад

@MP-tr6vz 6 лет назад

First

@MP-tr6vz 6 лет назад

I’m early

@khalidmohamed154 6 лет назад

first

@slitherwaz7298 6 лет назад

@kaizhang4005 6 лет назад

the farmer is a she?

@rubyroobster923 6 лет назад

you obviously have never visited Communist Russia

@rubyroobster923 6 лет назад

everybody's a farmer

@007Anukul 2 года назад

Looks like old times British rich person.

@Dowskydowsky 5 месяцев назад

It’s a pat

@MrTugwit 6 лет назад

Khan Academy, you're teaching nonsense. At about 5:00, you have the equation: x = -Δt * MPC That's illegal subtraction: -Δt before multiplication: -Δt times MPC You can't subtract before multiplying, Dud.

@willemvanoranje1533 3 года назад

Are you serious?

@MrTugwit 3 года назад

@@willemvanoranje1533 Yes. You cannot add or subtract before multiplying: P-E-MD-AS. So in the equation: x = -Δt * MPC, you cannot increase or decrease taxes before multiplying. Khan Academy does the same stupid thing at about 3:04, with: output = x (1/(1-mpc)). It would be simpler if he would show the actual equations. Marginal propensities apply to increments, so output = x (1/(1-mpc)) should be written ΔY = ΔC (1/(1-mpc)). You cannot add to consumption and income before multiplying.

@willemvanoranje1533 3 года назад

@@MrTugwit -Δt doesn't mean you subtract anything (at least not in the way you seem to think it does). All that minus indicates is that if taxes are raised, i.e., a positive change in the t variable, that has a negative result on output (logically), so you put the minus there to let Δt negatively influence output. The order in which you're supposed to perform operations is irrelevant here.

@MrTugwit 3 года назад

@@willemvanoranje1533 "Are you serious?" If you don't want to use P-E-MD-AS, then don't use math. Kahn Academy fouled this up by not showing the equations. You can't even tell what he means by "x". Consumption? Investment? Keynes' original equations from 1936 are simple: 1) ΔY = ΔC + ΔI 2) ΔY = k ΔI Keynes said that income will increase: ΔY, by a multiple: k, of a government-spent investment increment: ΔI. He showed the marginal propensity to consume 2 ways: 3) ΔC/ΔY 4) 1- (1/k) Set 1- (1/k) equal to mpc, and you can get: 5) k = 1/(1-mpc) So Keynes' investment multiplier equation is: 2) ΔY = (1/(1-mpc)) ΔI Now spend $1 of investment: 1) ΔY = ΔC + ΔI 1 = 0 + 1 2) ΔY = (1/(1-mpc)) ΔI 1 = (1/(1- 0 )) 1 3) ΔC/ΔY = 0/1 4) 1 -(1/k) = 1 - (1/1) = 0 You don't even need Keynes' investment multiplier equation. ΔI has zero marginal propensity to consume. And adding to investment before multiplying is legal in equation 2, because multiplying by 1, is not actually multiplying. And his infinite series is: 1 + mpc + mpc^2 +... = 1/(1-mpc) 1 + 0 + 0 ^2 +... = 1/(1- 0 ) It would be simple, if Khan Academy would show the equations.