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We shall examine the impact of investment on the economy in the context of the model of aggregate demand and aggregate supply. Investment is a component of aggregate demand; changes in investment shift the aggregate demand curve by the amount of the initial change times the multiplier.
Jan 10, 2023 · Table of Contents. Chapter 1: Economics: The Study of Choice. Chapter 2: Confronting Scarcity: Choices in Production. Chapter 3: Demand and Supply. Chapter 4: Applications of Demand and Supply. Chapter 5: Macroeconomics: The Big Picture. Chapter 6: Measuring Total Output and Income.
What an economist means when they say "investment" is different than what most people mean when they use it in day-to-day conversation. In this video, take a deeper dive into the investment category of real GDP. Created by Sal Khan.
- 8 min
- Sal Khan
- Remember back in the first video when market value of the Avocado changes from $1 to $0.50 so does the GDP effect it has however like someone else...
- Great question, Jacob. Although the firm is "consuming" electricity in the typical sense of the word, it would not count toward consumption. Instea...
- You are buying only an apple but the person you are buying from sells numerous apples and to keep record how many apple he sold he keeps a stock st...
- Thank you Saxet. Well, you say the producers subtract the inventories ( COST) from the final price to get the gross income - OK. But, we are talkin...
- You would be increasing the efficency of the existing capital structure. If you could charge for it, for example if you sold membership in you're l...
- The fact that only a New* house is investment is essential to measuring economic growth. The point is that there needs to be some point to measure...
- When people buy a house, they generally hope for its value to appreciate over time. This may be because they want to resell it, improve it, etc. Th...
- (I) All financial investment that does not create anything tangibly valuable–e.g. investment that basically just shifts money around–does not count...
- We can consider the renovation as a service. And if it is done by a firm rather than by yourself, it should be counted as a part of GDP.
- You're basically correct in your thinking, however, consider what happens if you don't count inventory that exists at the end of a period.... All t...
Investment is one of the most important variables in economics. On its back, humans have ridden from caves to skyscrapers. Its surges and collapses are still a primary cause of recessions. Indeed, as can be seen in Figure 1, investment has dropped sharply during almost every postwar U.S. recession. As the graph suggests, one cannot […]
Principles of Macroeconomics is an adaptation of the textbook, Macroeconomics: Theory, Markets, and Policy by D. Curtis and I. Irvine, and presents a complete and concise examination of introductory macroeconomics theory and policy suitable for a first introductory course.
Economic growth is an expansion of the capacity to produce goods and services. Economists traditionally believed that expanding the stock of capital leads to economic growth. In this video, we explore the important link between investment and growth using the PPC model. Created by Sal Khan.
- 8 min
- Sal Khan
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Macroeconomics 8 units · 46 skills. Unit 1 Basic economics concepts. Unit 2 Economic indicators and the business cycle. Unit 3 National income and price determination. Unit 4 Financial sector. Unit 5 Long-run consequences of stabilization policies. Unit 6 Open economy: international trade and finance.
