Ch 13 1 Expenditure and Fiscal Policy 13 1 13 2

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‼️The EconSteps series belongs to the Economics classes of Peter Schmidt at Hochschule Bremen.

🔎 You find an overview at https://schmidt-bremen.de/EconSteps.html

📖 Economics - Microeconomics - Economics for Business by Begg and Ward

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Timestamps:

00:06 Introduction – From Globalization to Domestic Economy
00:38 Fiscal Policy Overview & Chapter Structure
01:19 Chapter 13 Sections Explained
01:48 Learning Outcomes: Keynesian Cross & Multiplier
02:49 Fiscal Policy Preview & Crowding Out
03:36 GDP Expenditure Method Refresher
04:49 Planned Expenditure: Consumption & Investment
05:18 Classical vs. Keynesian Thought
06:34 Demand Shortfalls & Economic Slowdowns
06:46 Keynesian Cross: Planned Expenditure vs Output
08:15 The 45-Degree Line Explained
09:49 Planned Expenditure vs Output: Diagram Setup
10:02 What Determines Consumption?
11:14 Autonomous Consumption & MPC Introduction
12:07 Understanding Cₐ & MPC (Slope)
14:00 Interpreting the Consumption Function
15:02 Consumer Confidence & Real-World Data
16:41 Using World Bank Data for Consumption & GDP
18:49 Estimating the Consumption Function (Class Task)
20:17 From Consumption to Saving: The Saving Function
21:32 Saving vs Dissaving on the 45° Line
23:10 Saving Function Formula (1 – MPC)
24:24 Summary: Consumption & Saving Functions
24:30 Planned Expenditure Part 2: Investment
25:34 Investment as an Autonomous Component
26:00 Building Aggregate Demand (C + I)
27:12 Equilibrium: When Planned Expenditure = Output
28:24 Solving for Equilibrium Income
30:05 Example Calculation of Equilibrium (Y = 285)
30:54 Introduction to the Multiplier
31:40 Visualizing the Multiplier Effect
33:12 Computing the New Equilibrium (ΔI = 5 → ΔY = 25)
34:45 Deriving the Multiplier Formula
36:03 Interpreting the Multiplier (1 / (1 - MPC))
37:09 Understanding the Multiplier Table (Class Exercise)
38:10 Preview of Next Video: Fiscal Policy & Government Spending
38:49 Closing Remarks