Macroeconomics - The Classical Model I.mp4

[@TheMega216]

Outstanding explanation made simple to understand. Thank you for taking the time to make these videos. I am taking Macroeconomics online and understanding the curves without a verbal explanation has been really difficult for me (hence searching youtube for help). Thanks again!

[@nepsjg]

you just saved my life. exam tomorrow- and i'm full confident now that i can explain this model and get good grade. thanks a lot for uploading these videos. next video - i need to understand keynesian model.

[@dayoungsong6705]

i spend hours reading my boring textbook and hourssss concentrating on my lecture.. but still had no idea what the heck was going on, but ur videos cleared everything up within minutes thanks for sharing!

[@shockerjason]

Perfect video. My economics teacher did a pretty good job at explaining this, but I needed a good refresher. This video is nearly identical to his last lecture, only you explained it a bit better (he skipped over the part where equilibrium doesn't happen immediately) and in less time, too.

[@username-ek1kd]

This man is the best economic teacher on youtube

[@rogerstrickland4004]

You made my day!!! ;)

[@muanzualiralte8108]

Sir, after 3 days of trying hard to understand this classical model, watching your video make me understand it so easy and clear...thank you.

[@stasiekpiekarski]

I've found this channel accidentally. I must admit that it is absolutely fabulous. It is really rare that short videos contain so much content and are very specific and at the same time attract attention are entertaining. Often valuable materials are boring and one must focus to follow. Thanks a lot!

[@MizAlexandria]

This is by far best explanation for the classical model I have ever heard.

[@alistairshields6988]

It's people like you that help me understand this stuff so clearly! Thank you so so much!

[@morecowbell1]

You're the best at summarizing and explaining. Thank you!!

[@diegomegi7369]

i understood this better watchingthis video than having my teacher teach my class for the past 3 weeks...great job :)

[@LJStability]

Thank you for these videos! I've read ahead in my textbook in my AP Macro class and I found your videos to explain the concepts in a more concrete way! Thank you so much!

[@economicsbaba8415]

I have watched all most all of your classes; they are just fantastic. Dear sir please keep doing such videos... thank you so much...

[@rogerstrickland4004]

Thank you; I appreciate such positive feedback.

[@MsEm089]

your lessons very helpful Mr. Strickland, you are very good prof thank you

[@cmarcion]

Your videos are so to the point and easy to follow! thank you!

[@guy9486]

2020, still the perfect video!!! Thank you, sir!!

[@yesilgunes9709]

Do you know the answer to that question in the end of video?

[@Dragonpetal]

What great explanations. I really enjoyed your presentation of the classical model, just wonderful. Thanks so much.

[@0768E]

This was incredibly useful for my public policy and political science exam. Thank you!!! Subscribed.

[@jiffy902003]

Awesome. Thank you! You do a much better job at explaining than my teacher does. So helpful.

[@rafiyatrob8266]

Thanks a million!!!!!! I really need this for my test next week, thank you, I couldn't have found anything better to clear my misunderstandings :)

[@arnabiarnab3037]

Great explanation and video

[@anshulkumarshah4455]

Awesome crystal clear explanation.....!!!!!!! Thank you so much..

[@Whatever4103uh8k]

I really enjoyed this explanation! Thanks!

[@belindaackley463]

Excellent! You make things very clear to understand.

[@TheCamillaGraver]

Thank you so much! You saved my macroeconomic exam!

[@Michael-ui3xi]

Thank you so much!! much better than what I'm getting from my lecturer, you're a life saver.

[@waggyish]

You're videos are the best! Couldn't learn this stuff in my lecture class, let's see how I do on my test tomorrow!

[@1993rae]

Thank you so much! You have no idea how much I appreciate this!

[@TheWyvern66]

Thank you for your kind words! You made my day! RS

[@minikin1591]

incredible i could understand this graphic by the first time thank you man, you're the best!!1

[@rakshasingh5800]

That's what is teaching. Loved tthe explanation!

[@henk-ottolimburg7947]

only 2000 viewers, yet this is very good !

[@pratishthashukla3486]

thank you so much sir for such wonderful video..... truly you made my day... god bless you sir..

[@ravimallah6689]

amazing explanation sir, great work .

[@Clumman]

Very well taught and I am glad you acknowledged room for debate as there are a few elements that are not accounted for in that model such as the effect outsourcing production and auto production has on employment rates as well as big business increasingly relying on financial operations to boost profit margins over goods production. The illusion that government does not play a role in the market is misleading as well considering they subsidise corporate activities.

[@sammulder8742]

But doesn't it depend on the form of subsidy? If the government is already taxing a business and the supply side economist argue that a subsidy should be given to lessen the tax burden then wouldn't a classical economist agree? If the subsidy is given as a form of protectionist policy I would agree with you however it is not necessarily so if the business is already being taxed at a rate higher than the subsidy.

[@Clumman]

+Sam Mulder in principle it shouldn't matter, it just shows that free market theory does not fully encompass real life economics. Subsides are a necessity, even when they are not simply rebating taxation.

[@sammulder8742]

I'll admit I'm still new to studying economics so my view may be naive however couldn't all of the reasons that necessitate subsidies actually be the cause of either government intervention (such as raising property and corporate tax rates that cause a company to have to outsource to keep a profit) or natural changes in a market such as new more profitable industries taking the place of older less profitable ones? As we have seen in Pittsburgh with the tech business that seem to be taking the place of the steel business that have been pushed out

[@Clumman]

+Sam Mulder I would agree with that, I think that when you consider the purpose of government you then realise that a truly free market simply can't exist without government potentially failing in their duty to society. Subsidies are just one form of this intervention, even though the motive behind subsides and there eventual outcome maybe questionable. And you're not being naive, in fact you have the right attitude engaging in debate. Economics is as complex a science as any other, and there are far too many stubborn 'economists' who could do with opening their minds. I think the best way to learn is to be proven wrong, I'm constantly doubting myself haha!

[@shamasiddiqui83]

this is amazing. so well explained. beats my professors anytime. i am so thankful and am looking forward to more videos to learn from.

[@JamesDubreze]

First, thank you for that explanation. It's the best I've seen so far on aggregate demand. This concept of aggregate demand nonetheless is common sense stuff. Anyhow, the overall result is a total reduction in the living standard of people within the market economy.

[@masianno]

This has helped me a lot! Thank you so much Mr. Strickland Kind regards all the way from South Africa :)

[@TheWyvern66]

I'm delighted it helped, Masi. Thanks for the great feedback! RS

[@biancajuan343]

I need this for my report. Thank you so much. :) Cheers from the Philippines!

[@marianabenitezrubiano9207]

Loved it. Greetings from Colombia 🙌🇨🇴😁😁

[@anhthuynguyen6772]

He is so enthusiastic!!! Love that

[@Kotlon4o]

Great! A very simple and good explanation.

[@mattix9]

really helped me studying macro-economics thanks a lot !

[@Robbob9933]

History proves that government intervention in economic correction always lengthens the duration of the correction. We were already well on our way out of the Great Depression when the Government and Federal Reserve stepped in and destroyed the recovery with Keynesian policies. Also in history, when corrections are long, the entrepreneurial spirit kicks in and new business with new products, services, or old products produced more economically start appearing.

[@TPRahul88]

Excellent explanation, i loved it , thank u sir

[@onewsjuliette]

Thank you sir. thank you. needed this so much. trying to revise basic macroecons as much as i can before my lecturer proceeds with keynesian model after the break.

[@Ivarsson90]

Awesome video, like the rest you put up - thank you sir!

[@ShevonSalmon]

Thank you so much all the way from Jamaica really helped

[@lessatwi1]

Brilliantly explained.

[@jedsm]

In the depression of 1920 (1920-1921) it took roughly 15 months for the American economy to recover (During Wilsons' (Wilson had at the time suffered from several strokes so due to his physical state he couldn't intervene) last mandate and the mandate of Harding), being amongst the quickest and most efficient recoveries in American history. You may also look at the fact that when this depression was at its worst, it was worse (statistically) than the Great Depression of the 30's.

[@santiagofernandez925]

You are great. Thank you very much. Keep it up.

[@makarabondaule769]

The videos have really helped me...thanks a lot

[@danielchandler1700]

This is a great video, thanks for posting it.

[@guptaachin]

Everything now makes sense. Thankyou.

[@Madakhi1]

You sir, you are a great lecturer

[@MrAbdulaziz1995]

Sr. you are awesome, relaxed and clear. Only if you can record these lessons in a better quality and newer versions. A lot of students appreciate this. Thank you.

[@risg4me]

That was very helpful. thank you, Sir.

[@thisismylife50]

Really great work

[@GavinDoran]

The only thing I am confused on/wondering is if wages go down, prices decrease, and people get their jobs back, wouldn't that cause more spending with C,I,G, AND Xn, therefore moving AD2 back to AD1? If not, how/why would AD2 move back to AD1?

[@footpot]

Excellent work

[@m.g9229]

Wouldn't the aggregate supply in this case, and in the case of the keynesian model be a long run aggregate supply curve, rather than a normal aggregate supply?

[@pakiprince21n]

Thank You Sir. I have a huge test Thursday and your videos help tremendously. Do you have videos for Keynesian Aggregate Supply and Demand Curves?

[@0marbrav030]

Thank you !!! Ready for my Test tomorrow ! (:

[@fabianb5594]

what does it mean for the economy that we finally meet natural output at a lower price and wage level?

[@Rodrigo870]

¡Genio! Excelent explanation!

[@Kariukibond]

For clarity, shouldn't supply also decrease during depression thus during recovery it increases relative to price falls and increased employment meaning a new equilibrium. He didn't mention that so I'm wondering.

[@clifforddoctor2359]

thanks a lot, you have helped me a lot

[@JamesDubreze]

When marginal benefit of buyers over exceed what is considered a reasonable profit, the overlap of extended profit reduces on the economic value of society. Thus, minimize on the amount of time the money remain in circulation. And as this process continues, consumer's buying power diminished, which then intensified the means to print and distribute money.

[@Chaotichomosapien]

What is the answer to his last question? How long does the economy take to readjust?

[@haydenk2144]

should the vertical axis be price level?

[@MatteNoob]

Expectations of the future play a major role in the trajectory of the economy. If consensus is that we're heading for a decade long depression, then most likely it will become a self fulfilling prophecy. The fact that expectations matters can be seen through communication from the central bank and the government. They try to build positive expectations because those will keep the economy going. The problems are that irrational expectations create bubbles, which eventually bursts.

[@teomaky]

Very well explained.

[@Hdk2i2]

thanks,you saved my day!

[@JamesDubreze]

The public invest their monies in the facilities of the private sector. For that reason, it is the continuous flow of capital in the hands of the public that can guarantee how long markets will remain efficient. In that respect, the marginal benefit of buyers and the marginal cost of supply must remain in equilibrium with the flow of capital in the hands of the public who foster the need for demand.

[@bikrambarua464]

Great stuff ! Thanks .

[@jedsm]

That for example is (In my opinion) proof enough that recovery according to the laissez-faire model of economy (Austrian school of economy etc) is far more effective than for example the Keynesian model, where you pump in large amounts of money into dead economies, lowering interests rates, creating investment into the industries, causing a bubble which is ready to burst whenever. For those of you who are more interested, I'd suggest going to mises.org and start looking around. =)

[@_Ken_SD]

Thank you so much! It's really helpful :)

[@thealove9951]

Very helpful, thank you.

[@tradersid369]

Sir, can you suggest sources from where I can study; Marshallian and Varrasiam approaches to price determination, alternate distribution theories of Ricardo, Kaldor, Kaleeki, Modern welfare criteria of Pareto Hicks and Scitovsky, Arrow's impossibility theorem, A. K. Sen's social welfare function, also topics under Public finance and International economics. I cannot find these topics in your video courses. If possible please do suggest me books or links to understand these concepts. Sir students like me who don't have access to quality education are largely benefited from your efforts. Thanks a lot :)

[@PeterProf7777]

This model is great as long as people are not in debt and the workers are all domestic. Debts become larger when wages and prices fall. Debt must be flexible as well in order for this model to work. If debt is not flexible then their lower wages will be used to pay back that debt and goods will not be bought. We then cannot get back to full employment (potential) GPD. Supply will not create its own demand. Also, another point is that many goods are created by third world workers whose wages have always been depressed.

[@dkballer92]

much much better than school

[@shaniasooknanan9529]

Thats classical models in the long-run?

[@TheBobsnadenica]

very useful and clear : )

[@native2dreams]

love this guy

[@chriskimmel4287]

And the expectations about the future are powered by the interest rates. Families save so they can spend later. When lots of people save, the interest rates fall, signalling that people are freeing up resources now to claim resources later. The freed resources now are loaned by banks out at a low interest rate to businesses, who invest in projects yielding future returns. In this way, less C means more I. That's the Austrian economic perspective. The market coordinates time with interest.

[@JamesDubreze]

Markets are efficient when the private and public sector benefit from the exchange of good and services. If the private sector benefit and the public is dissatisfy, markets are not efficient no matter how well the private sector does.

[@jedsm]

Sorry, not pumping it into economies but rather industries. And they're not dead, but the point is that they're not expanding (or even cutting back) which means that they don't grow despite the investments (which are spent on expanded operations, so more stores etc) causing a bubble. For example, if a pizza restaurant that is doing alright opens up a store across the town but the demand for the pizza doesn't increase, that will cause a waste of resources (money etc), causing a backfire.

[@JamesDubreze]

In that case, a reduction on labor capital is not enough because not all the employees within the company will experience this decline in wage. Therefore, government must intervene to assist the companies with low interest rate as a mean to prevent businesses from closing their doors. If government do not do this then all you'll end up with is a recession.

[@abdulrahmannazeer4001]

why will producers produce output at the new equilibrium C if they can maximize revenue in between point b and c

[@TheWyvern66]

Great question! Recall that this is a MACRO model - the aggregation of all the 'micro' markets. And in each micro market, the number of consumers is growing, attracting both more competition and lower price - and greater output overall. So it's a case within each micro market of demand increasing, not choosing a point on a static demand curve. :)

[@kriss_s89]

Thank you!

[@JamesDubreze]

The company benefit because labor is purchased for less. However, when company reduce prices to accommodate for the overall reduction in living standard what happen with money borrowed at a given interest rate? There's no certainty that a reduction on labor cost will balance the company's overall cost. The new aggregate demand 2 represent a deflationary period within the market economy.

[@maeheck]

Amazing!

[@gogostar22]

Thank you sir.

[@llewellynwilliams-brooks4299]

in a true classical model, full employment is assumed. Not an optimum level of employment.

[@omarabukar8217]

thnks professor

[@红领巾-k9x]

Outstandanding giaogiao!

[@billssamples]

that was great.

[@vuthuphuongbg]

Thank you so muchh :)

[@92129alex]

thank you

[@agitari740]

awesome

[@bipulchandra6612]

love it