Macroeconomics: Income and output
Bubble Saving (6/17/2010)
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
Circular Flow - flash (3/26/2010)
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
Circular Flow - youtube (11/2/2011)
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
Circular Flow (transcript) (11/18/2010)
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
The circular flow diagram captures the big picture of how different sectors of an economy are connected to one another by flows of money and goods.
Crowding-out Effect - youtube (11/2/2011)
Government deficit financing could crowd out private investment.
Government deficit financing could crowd out private investment.
Debt Trap - flash (6/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Deficit and Debt - youtube (11/2/2011)
Chronic budget deficits could lead to a ballooning debt/GDP ratio.
Chronic budget deficits could lead to a ballooning debt/GDP ratio.
Deficit and Debt (transcript) (11/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Domestic Content (5/13/2010)
Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.
Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.
Expenditure Multiplier - flash (12/14/2009)
Total expenditure could be a multiple of the injected stimulus if most of the additional income is spent.
Total expenditure could be a multiple of the injected stimulus if most of the additional income is spent.
Flows and Stocks (6/17/2010)
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
Front Loading (5/12/2010)
Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.
Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.
Inflation Illusion (2/4/2010)
Price inflation creates strong illusion of monetary gains that hides the reality of more mundane performance.
Price inflation creates strong illusion of monetary gains that hides the reality of more mundane performance.
Injections and Leakages - Planned vs Realized (1/3/2013)
An open economy allows for more varied interplays between planned vs actual leakages and injections among countries.
An open economy allows for more varied interplays between planned vs actual leakages and injections among countries.
Jobless Safety Net (5/13/2010)
Jobless benefits cushion the fall of disposable income during economic recessions.
Jobless benefits cushion the fall of disposable income during economic recessions.
Paradox of Thrift (2/24/2012)
If everybody tries to save more and spend less, nobody ends up saving more from a shrinking output pie.
If everybody tries to save more and spend less, nobody ends up saving more from a shrinking output pie.
Re-counting GDP (9/9/2013)
Some long-lived intangible assets will be counted as capital investment rather than one-time expenses in US GDP.
Some long-lived intangible assets will be counted as capital investment rather than one-time expenses in US GDP.
Savers, Suckers? (5/12/2010)
Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.
Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.
Spending Multiplier - youtube (11/2/2011)
Spending multiplier in the absence of crowding-out effect.
Spending multiplier in the absence of crowding-out effect.
