- In the last video, we discussed (among other things) how the economy responds to a change in government spending. This video provides additional discussion on how the private sector (consumers and firms) may respond to public sector changes.
Topic 8: Equilibrium in a Real Intertemporal Model with Investment
Videos
Real Intertemporal Model: Output Market
- As we move toward defining competitive equilibrium in this Real Intertemporal Model, this video will focus on the output market. We'll talk about deriving the output supply and output demand curves, and we'll learn what kinds of changes can cause these curves to shift.
Real Intertemporal Model: Experiments
- Having established the graphical depiction of competitive equilibrium in the previous video, now we'll study how the economy responds to changes in government spending, physical capital stock, and total factor productivity.
Crowding Out