Consumption function basics | Macroeconomics | Khan Academy

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The basic idea of a consumption function
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[@aprildeath1015]

Thank you so much. You saved me from my suckish teacher´s explanations.

[@2leet2cheet]

I think it would have been easier to grasp if you did not call the 500 "base consumption", but rather called it "survival consumption". The 500 is the amount people NEED to spend in order to survive, while anything above 500 is their propensity to spend, or you could say, "Anything above 500 is optional spending". That's why we multiply anything above 500 by MPC.

[@vishnuvardhan_me1892]

Wow, great explanation.

[@sajink8210]

Khan academy > my university professor

[@Novacification]

Nice introduction to the subject. Thank you

[@kayod6611]

Thank professor that I always hear your voice in all khan academy video for the explanation.

[@pandaonsteroids5154]

My professor explained this very well. I think I got a good one! You just helped me get into my head one more time. Thanks for your videos!

[@ethandalton5201]

If you’re here, he didn’t do a good enough job 😭😂

[@pandaonsteroids5154]

@@ethandalton5201 @Ethan Dalton Not true. I like to study through multiple methods. Going over concepts doesn't mean my professor didn't do good. It just means I like to hear things an additional time in a different way. If we all went to class and never studied outside or reviewed anything, it'd be hard to make A's.

[@SammyBoiBeThicc08]

this man knows all

[@angamrai4064]

I used to watch ur video in class 10th specially maths and science

[@muhammadabdurahmonov6999]

Hello. Firstly, thanks to you. You helped me a lot during my hard at the same time not understandable semester and sessions. I am so grateful for that really. Everything would be perfect squared, if you would put numbers to your videos. Because they are scattered, it a little bit hard to put them together in mind.

[@bestanimerecaporiginal]

Hello sir I wanna start teaching on KZbin, how can I get this same blackboard

[@mehrdaruvalla5408]

Omg this was so helpful and so to the point... Good work 🎈

[@officercadre]

Hy there

[@2leet2cheet]

This was further confused when you drew the second curve starting below 500, meaning you changed the amount of consumption needed to survive...Please, correct me if I'm wrong.

[@xsauce3858]

I understand it well thanks.

[@elchafa337]

These videos are awesome, thank you.

[@samuel-sn9jh]

Thank you for sharing this, i understand it better now

[@stephenwalker9213]

Seems over complicated. A lot of this stuff is simply made complicated to justify specialism and cost.

[@Anthony-x5Anthony__1f2y]

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[@shanyabowen8408]

How do you find the marginal propensity to spend if disposable income is 80%, the MPC is 0.75 and imports are 27 percent?

[@val5773]

well, with my veryyyyyy low and limited understanding, MPC+ MPS= 1. so if MPC is 0.75 then MPS is 1-.75= .25

[@raisindetre866]

Thx kham

[@georgetea7chhakchhuak879]

I'm new and not too good at english, does 500 implies our necessary consumption and 60% of disposable income implies our unnecessary consumption..

[@ninaddongare6514]

500 is the basic consumption required to be alive. If you're unemployed and have no income still u need some consumption to have your food clothes and shelter. Thus 500 is basic consumption. As you get employed your income will rise and ur consumption as well which is represented by 0.6*(Disposable Income)

[@mircovladimof1342]

Please how can you calculate APC and MPC given C=1000 + 0.25yd

[@nneenoknows4771]

I’m pretty sure 0.25 is your MPC already unless my econs teacher doesn’t know econs 😂

[@DanTheMan0922]

I like this. Keep doing your thang! lol

[@sabitapokharel2584]

thanks a lot!!!

[@batool4386]

Thanks a lot

[@khashya786786]

How do you find marginal propensity to save given the consumption function?

[@vermapratyaksh]

MPS = 1-MPC 1-0.6 = 0.4

[@georgetea7chhakchhuak879]

Kashia Bee MPS+MPC=1 MPS=1-MPC=1-0.6= 0.4

[@mikeaanerud4437]

Thank you for this video. Very helpful

[@nikkiaragon07]

I love how you say disposable twice

[@aditkasim]

+Pamela Aragon i love you.. #notverysmooth #btw

[@rohan3901]

😂😂

[@sharmilamahato2945]

Sir how is disposable income calculated?

[@nasound42]

Income minus taxes such that D.I.=I-T

[@stephenmuchiri566]

Well understood ....

[@pathfinder6997]

This playlist is not in the correct order

[@apidas]

ratio and formulas aren't really a great way to show people the relationship between things

[@shammaalali352]

So we don’t solve the equation bc u didn’t use 1000 to calc something we use it for the graph

[@hainguyenvan6910]

the sound is not good I am quite disappointed

[@bhavyadhingra2997]

Awesome

[@rajeshwarprasad5836]

When MPC is 2/5 , consumption is 100 and income is 0 what is the consumption function??????

[@eldaine]

Conjunction Junction... does your car use gasoline? if I could show you exactly how to make it run on water would you be interested?

[@333Eternal]

hi, how did 500 + 0.6 x 1000 become 1100 ??

[@k.obrien8043]

(1,000 x 0.6) + 500 = 1100

[@ryanbentley8029]

Too much distracting information stick to the principles

[@nebuchadne33ar]

But I don't pay taxes 😜

[@kiwi9660]

clam shells hehehheehe

[@mwibianakaoma5793]

Too much talking to get to the point it becomes confusing and boring!

[@officercadre]

Hy

[@aishaabdullahi6809]

No one told u to watch if you thought it was boring video.....go have life girl

[@leatitiagankeu1857]

Talking tooo fast

[@shaikul4887]

Watch the vid on x0.75 speed

[@MrTugwit]

Khan Academy, it's the average propensity to consume: C/Yd = apc which applies to disposable income: C/Yd = apc C = apc Yd Your equation is then: C = base + (C/Yd)Yd C = base + C 0 = base So base consumption must = 0 and your math is nonsense.

[@adityayadav7434]

Thanks for wasting time sir 😊

[@ewanjk]

useless explainations you make me wish i didnt have ears