The Multiplier Effect in the AD-AS model

Whenever spending increases by households, firms, the government, or foreingers, a country's aggregate demand will increase. However, the total increase in AD will be greater than the initial increase in spending! In this video we'll explain and illustrate how the Keynesian spending multiplier affects real GDP in an economy following an increase in either consumption, investment, government spending, or net exports.

[@user-jh3kz7dp2z]

If you draw an arrow from AD1 to AD2 and say there is a change of 40billion dollars in aggregate demand, wouldn't that mean that the change from AD to AD2 would be larger than 40 billion?

[@XAUGEEK]

It should've been 32b

[@khadijaouhssain1897]

thank you so much for these videos, you saved my life!

[@ryu_96]

Thank you for the good explanation :)

[@mahiniqbalchowdhury6032]

[@mahadiarian9093]

isn't k= 1/1-MPS?

[@user-jh3kz7dp2z]

nope k = 1/MPS or k = 1/1-MPC

[@mahadiarian9093]

@@user-jh3kz7dp2z hi r u a girl?

[@edoardocono166]

@@mahadiarian9093wtf

[@rashiranka2660]

The writing is so difficult to read.

[@aleenabatool2315]

Blur video

[@akeelmalik7308]

Disable ur data saving mode