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Keynesian Cross : Keynesian Cross and the Multiplier

By: Sal Khan

More on shifting aggregate planned expenditures. Connecting to the multiplier

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. We now build on our consumption function models and start to explore ideas of planned expenditures as a function of output. When plotted with the actual

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Aggregate demand and aggregate supply : Long-Run Aggregate Supply

By: Sal Khan

Thinking about why aggregate supply may not be influenced by prices in the long-run

Aggregate demand and aggregate supply. Keynesian thinking. Demand-pull and cost-push inflation. Fiscal and monetary policy. This tutorial looks at supply and demand in aggregate-from the perspective of the entire economy (not just the market for one good

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Monetary and fiscal policy : Tax Lever of Fiscal Policy

By: Sal Khan

How government can effect aggregate demand through tax policy

Aggregate demand and aggregate supply. Keynesian thinking. Demand-pull and cost-push inflation. Fiscal and monetary policy. Governments (and pseudo government entities like central banks) have two tools at their disposal to try to impact the business cycl

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Currency reserves : Speculative Attack on a Currency

By: Sal Khan

Balance of payments. Current account. Capital account. Currency reserves and speculative attacks. This tutorial delves into how and why countries (usually their central banks) would want to keep other countries' currency in reserve. It then goes into why

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GDP and the circular flow of income and expenditures : Circular Fl...

By: Sal Khan

Understanding the flow of resources in the simplest possible economy

Circular flow of income and expenditure. Gross domestic product. Economics can some times get confusing because one person's expenditure is another person's income which can then be used for expenditure and on and on and on. Seems very circular. It is. Th

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