Keynesian Cross

Analyzing planned expenditures versus actual output using the Keynesian Cross

[ProTawN]

I swear to god, you are at least five times better at explaining stuff than my economics teacher. In an entire week of school (like 5 lessons) she couldn't explain it as well as you just did!
Thank you so much for making these videos.

[haoransong]

Thank you so much!!! You really have helped me a lot when I thought I had nothing that I could do to catch up for my economy classes.

[JessicaGomes-dnrz]

I love your videos, hopefully I will pass in my macroeconomics exam because of you :) Thank you so much

[miltonjordan]

thank god this exist, i am using it so much

[MarcelReck]

Very helpful! Also for a german University student. Thanks

[jmalvika]

awsm thanks!! helped me understand properly

[jeremyalbright]

How does positive unplanned investment occur? wouldn't the firm still plan for that amount of inventory to be produced? but they just had excess? i dont understand where that amount comes from if it is already accounted in planned investment spending

[rishavdhariwal]

i have some confusion regarding the Ep variable that Sal has taken in my opinion it is planned expenditure or preplanned goods and services ready for supply and the white dotted line is the actual consumption or demand so when aggregate demand rises shouldn't there be a shortfall of inventory as planned expenditure is below the actual demand and vice versa in the second case

[EphraimAtkinson]

At some point in the future, can you go through some of the data that is in the FRED economic database? I think it could be helpful to translate a concept like "consumer consumption" into the actual data that you could find on FRED.

[ricklongley]

Here's a tip for those like me that feel like the producing more / producing less feels backwards: interpret the factual expenditure (dotted white line) as the initial behaviour of producers, and the planned expenditure (yellow line E^p) as the behaviour of consumers.

thus, in Y1, producers have made way more than consumers are actually wanting to buy and producers' supplies are stacking up unsold.

in Y2, conversely, consumers are hankering for way more than the producers thought to make and their supplies are selling faster than expected. hope this helps!

[asmabakka]

Hi thank you for this informative video :D, I just want to tell you if you can add the subtitle in french to all your videos so that really can be easy to learn. Thank you so much

[cavantang]

When build ups occur two things occur simultaneously. Actual expenditure is lower than planned expenditure. Actual production is greater than planned expenditure.

[vodalavoid]

I cannot get this. At 7:05 is the problem. Planned expenditures are lower than actual output...that sounds like you made more stuff than you planned to make, so why did you do that? If you have inventory piling up from that....well why didn't you stick with your plan? Not sticking to the plan led to an increase in output that nobody apparently wants, increasing your inventory.

Obviously I'm missing something major here....there's a connection not being made between plans and actuality that has got me all backwards and I cannot get oriented correctly. It seems like an assumption is being made that Planned expenditures = actual demand. As if, plans always equal eventual actual demand. Otherwise, I don't see why you plan on expending less, but end up making more, but can't sell the more that you made....well why in the hell did you make it then??

[lionprincess]

Little question ... is Aggregated demand AD the same as Aggregated expenditures? The definition is the same the Sum of C, G, I and X-M or NX

[iPergjakshem]

ive got e fundamental question: how can Y=C+I+G=Output be the same as Ep=C+I+G and simultaneously be in two different axes? would appreciate an explanation

[brotherhood]

Wait, did Keynes not reject the whole idea of "market factors gravitate back into an equilibrium"? Why was this model attributed to Keynes?

[anarki]

ymkamara420 The only reason the USD hasn't depreciated is because it's the worlds reserve currency and oil has to be bought in USD. Once this ceases to be the case, the USD will depreciate as Peter Schiff predicted. The underlying logic behind his original prediction made sense, he just didn't take into consideration the impact of the aforementioned factors.

[philonaut]

salman khan zindabad!!! i'm thrilled that you have put forth the efforts that you have.

[PunmasterSTP]

Keynesian Cross? More like "With Khan Academy, you're never lost!"

[OMGmyFACE]

There's a lot to learn from this guy but it's so much better to use Youtube to watch his videos so you can speed them up and thumbs down the ones that offer nothing.