Keynesian Theory of National Income Determination | Two- Sector Model |

[@UtkarshMishra-j3r]

*Beautyfully Explained*

[@vedztagram]

Understood the concept really well, Thanks 💯👨‍🏫

[@EdupediaWorld]

Thanks ✌️

[@ajideomotola6659]

Thanks so much ma'am, your explanations were simple and understandable I love you ❤️

[@mihirkocharekar5433]

10:51 a is Autonomous consumption (that consumption which a consumer has to do even when he/she has zero income, for example the consumption of necessity goods)

[@mihirkocharekar5433]

@@RiteshKumar-qe1qd didn't get u

[@srinivasrao5408]

Mam simply superb nice explanation you have made the concept to understand easily thanks a lot

[@manveersingh3198]

Superb👌👌👍👏

[@pradeepkulkarni5032]

thanks for giving better knowledge

[@EdupediaWorld]

You are welcome. You can watch more video lectures here on different topics in different subjects and areas. kzbin.info/door/6E97LDJTFJgzWU7G3CHILwplaylists?shelf_id=0&view=1&sort=dd

[@umarajan5896]

very good explanation .. thank you ma'am :)

[@EdupediaWorld]

Welcome! Stay Tuned!

[@vijayakumardinoshan8584]

mam good explanation . plz put a video about other functions of two sector model.

[@mdsajedurrahman8673]

Good

[@anjalichinnu4682]

Thank you so much

[@legend-ox3hj]

Thanks maim

[@mwansa157]

That was very helpful Thank you

[@kaibaing4288]

Ma'am in case of Ad>As How can (logically) The economy invest more than it saves. Considering investment is made from savings?🙏

[@_zarintasnimetu6291]

Thanks Mam!

[@Violism]

Thanku so much! :D

[@sakshitak7395]

Can u pls explain Why keynesian equilibrium not take place at full employment ?

[@sakshitak7395]

Pls reply ,

[@abduljawadanwar8434]

The Keynesian theory of employment and income is explained in terms of the equality of aggregate supply (C+S) and aggregate demand (C+I). Since unemployment results from the deficiency of aggregate demand, employment and income can be increased by increasing aggregate demand. Assuming the propensity to consume to be stable during the short-run, aggregate demand can be increased by increasing investment. Once investment increases, employment and income increase. Increased income leads to a rise in the demand for consumption goods which leads to further increase in employment and income. Once set in motion, employment and income tend to rise in a cumulative manner through the multiplier process till they reach the equilibrium level. According to Keynes, the equilibrium level of employment will be one of under-employment equilibrium because when income increases consumption also increases but by less than the increase in income.

[@abduljawadanwar8434]

This behaviour of the consumption function widens the gap between income and consumption which ordinarily cannot by filled up due to the lack of required investment. The full employment income level can only be established if the volume of investment is increased to fill the income-consumption gap corresponding to full employment

[@abduljawadanwar8434]

there is not guarantee that the investment demand will be equal to the saving gap corresponding to full-employment level of income. There are various reasons for this. First, the people who save are not necessary those who make investment; while it is the general public which save but only few people constituting the entrepreneurial class undertakes investment. Secondly, the factors which determine saving are quite different from those which determine investment. While the people save for providing for the education, marriages of their children and also for contingency purposes such as diseases and unemployment periods, they also save in order to acquire durable goods such as houses, gold and jewelry. They also save to accumulate sufficient funds for their old age. But the level of investment

[@abduljawadanwar8434]

depends upon marginal efficiency of capital and rate of interest in the short run and on the level of population, technological progress in the long run. Therefore, it is not essential that investment should be equal to the amount of savings by the people at full-employment level. If due to the adverse changes in the profit expectations of the entrepreneurs, level of investment falls, the equilibrium level of national income will also decline. It is also worth noting that if the aggregate expenditure income beyond the C + I in Figure. It will mean that the economy is spending and demanding more than it can produce. The result of this will be rise in prices of the commodities.

[@aniruddhkulkarni578]

Thank you mam....

[@EdupediaWorld]

You are welcome. You can watch more video lectures here on different topics, different subjects and areas here. kzbin.info/door/6E97LDJTFJgzWU7G3CHILwplaylists?shelf_id=0&view=1&sort=dd

[@harshilshah5188]

Clear voice

[@EdupediaWorld]

We hope that you liked the content too, write us again and Stay Tuned for more such videos.

[@ashaapchn1563]

Why is the investment always constant?

[@EdupediaWorld]

Dear Bridget Hope, thanks for writing to us. We hope you liked the video. We will ask the faculty to reply you regarding the issue you are not clear. In the meantime you can visit our channel for more such videos choosing from a collection of around 6000 videos in 100s of different subjects: kzbin.info/door/6E97LDJTFJgzWU7G3CHILwplaylists?shelf_id=0&sort=dd&view=1 Alternatively browse through our website www.edupediaworld.com and watch the video you want to learn. Watch, Share and Stay Tuned. Best Wishes and Happy learning.

[@CaptSexyy]

Because it is autonomous.

[@yingyang9482]

It means it is not influenced by national income

[@saudshaikh7231]

where from you got 0.5 as mpc？

[@CADeepikasharma-99-96]

Thanks

[@EdupediaWorld]

You are welcome Deepika. We hope you liked our video and it was helpful. We have over 5000 videos of different topics in different areas. Do click and watch them here: kzbin.info/door/6E97LDJTFJgzWU7G3CHILwplaylists?view=1&flow=grid&view_as=subscriber We are sure you will like them and they will be of immense help. Best Wishes and Happy Learning.

[@louischan5764]

THANKYOUUUUUU

[@supunthilanka5704]

Thank

[@ajideomotola6659]

Please can I know why the aggregate demand curve is coming from 100 on the y axis

[@kaibaing4288]

24:06

[@nehatyagi8920]

please in hindi language

[@shivaniyadav463]

Mam can u explain this in hindi plzz

[@avf944]

Income is determined by "Y". NOT "I".

[@EdupediaWorld]

Dear Ashley Frank, thanks for reaching out to us. We hope you liked our video. We will ask our faculty to check it and put a rectification note if need be. Thanks a lot for the comment pointing it out. You can visit our channel and watch more such videos choosing from a collection of around 6000 videos in 100s of different subjects: kzbin.info/door/6E97LDJTFJgzWU7G3CHILwplaylists?shelf_id=0&sort=dd&view=1 Alternatively browse through our website www.edupediaworld.com and watch the video you want to learn. Watch, Share and Stay Tuned. Best Wishes and Happy learning.

[@naushadkhan8738]

She has used Y only understand properly bro

[@avf944]

Naushad Khan fyi, they admitted the mistake. YOU understand properly mate :)

[@ajideomotola6659]

@AVF She stated it that income is denoted by Y and I is denoted as investment