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

[@chorniycholovichok6]

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]

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]

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]

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!

[@NyakenyaWairimu]

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

[@aristojuan7926]

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

[@shannaentin130]

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

[@economicurtis]

Thank you!

[@alochukwuokolo5845]

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!!

[@uroztas]

cheers better than my lectuerer

[@Hariskhanmhariskhan]

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

[@VietNguyen-nm6kd]

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

[@economicurtis]

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]

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

[@ifeoluwapokolapo]

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

[@mukhtarmahat4131]

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

[@Hagi123999]

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

[@ajaycheema5]

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]

+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]

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

[@sharonchepkoech2664]

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

[@liambates4470]

think you just saved my degree mate thanks a lot !

[@alainrichardmelanbrou8365]

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

[@sebiddekenneth1780]

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

[@mohamedarabi1257]

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

[@satyajeetdeshpande1837]

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

[@cartilo2619]

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

[@adnomahad5992]

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

[@georgerv]

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

[@Explorer982]

Thanks!

[@economicurtis]

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

[@puritysusan3158]

Very elaborate and you made the equistions less " threatening "

[@kijeannie4317]

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

[@johncena3576]

At 7:14 why do you double both sides?

[@unigrow5855]

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

[@MrCraftyGuitar]

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

[@TheGunshot3000]

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

[@ultrabrian100]

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

[@majharulislam6184]

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

[@reddish10]

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

[@sasheenmorgan4254]

This video was extremely helpful, thank you so much!

[@noodles7685]

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

[@taturita5189]

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

[@economicurtis]

wonderful, I'm happy it helps!

[@wordwords762]

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

[@hm_techsphere]

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

[@raimundomunozvillegas7236]

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

[@analecha7ebek]

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!

[@jessea.5185]

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

[@bellasima1101]

Great explanation. 👍 thank you for helping me understand

[@CJM-nk5lk]

Very clear & easy to follow - thanks a lot!

[@cihangwang8044]

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

[@architakhan4826]

Nice teaching.. Love it

[@lindseybreier2684]

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

[@tims4283]

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.

[@dr.faithadhiambo254]

Thanks so much!!! Bravo for the good work

[@milkerfan3019]

I just failed my test, thanks anyways though.

[@jimmyfrankobote9338]

Very helpful for the learners

[@angelangelov4193]

Great explanation! Thank you very much!

[@_naledi]

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

[@MyMrwrestling]

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

[@ahmedalfihri]

It is really good explanation ❤❤❤

[@dr.faithadhiambo254]

thank you so much Sir!

[@nonofolechuti3389]

very well explained sir. thank you

[@mollamengesha3374]

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

[@ririeretekabu9214]

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

[@Ca222-h4s]

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]

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

[@mohammedharoub1195]

Nice video...well explained thnk to u

[@l.lawliet1838]

I have a problem bc in my homework the t is an equation, it’s not a simple number like 40. The equation for T is 300+.25Y. Would i just substitute it for T or do I just use .25 for T.

[@yemiabadariki9572]

This is awesome. Thank you very much sir.

[@thomastadele3412]

thanks alot sir . i got much knowledge

[@peterwallace275]

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

[@vegabrink9998]

thank you, such a clear example! very helpful!

[@MyMrwrestling]

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

[@economicurtis]

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

[@MyMrwrestling]

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

[@economicurtis]

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]

economicurtis nice one - really aprreciate the help

[@actionthrillromance1701]

I have a problem that transaction demand for money and speculative demand for money has been given rather than M & P and the rest of the ques is same. How can I solve this?

[@taleikaloumaira2065]

thanks for simplifying it so well

[@alloussmouad9893]

thank you so much from morroco

[@zainislam554]

Y= 400! what kind of income is it? 1- The level of income through which a particular levels of savings are generated and later on that level of savings are converted into investment or, the second option is that this y=400 came after the whole of the multiplier process took place and a particular level of income generated ?

[@rabeccamwila1314]

phenomenal, thanks a billion!

[@thomasward7134]

this was really helpful thanks

[@RicoLamar987]

Why would we double both sides?

[@economicurtis]

You're welcome!

[@Felix-iu1by]

very helpful, thank you very much!!

[@chathuranganie]

Thanks for made my day ❤

[@cliffordjohannes9070]

thank you so much, this was super helpful.

[@rreinauerreinaue8577]

This is very helpful. Thanks!

[@ohenefleqzy]

Very helpful thank u very much

[@Uzma1110]

Thank you so incredibly much!

[@abirsarkar7075]

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

[@4487497]

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

[@dalkeiththomas9352]

really great stuff

[@imnotyourfather2866]

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

[@economicurtis]

Thanks for that!

[@danglinlego8398]

The video is very helpful

[@collinswachira1]

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

[@shaktimaharaj8237]

Hi, are these slides available anywhere to be downloaded?

[@Mendel73]

hello. What can we do when P is not given?

[@fredrickkaniaru6245]

Very helpful. Thankyou

[@SaiRam00]

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

[@study_with_samaa]

Thank you Sir 🙏

[@gtudsd]

Does anyone know why he gets the expression +0.5y= 250-10r? Surely if you are subtracting from each side, taking the 0.5y over to the other side will make it negative, giving you -0.5y?

[@katlomolefe7946]

im here wondering the same 😭

[@martinhamilton1906]

Thumbs EFFING UP!!! Thank you

[@astroi1987]

how do you get that you have to double everything when you have to solve for lis curve

[@uroztas]

when you move the 0.5Y to the other side you get Y(1-0.5) which is Y(0.5)=A... then when you divide both sides by 0.5 u get Y=1/0.5[A].... 1/0.5 is double

[@economicurtis]

You are too kind!

[@stephenaidoo3386]

Good job weldone!

[@markmawira2491]

this was very useful

[@pedroguarda7792]

really helpful, thank you