LM Video Tutorial

http://www.macrotutor.weebly.com

This video is the third in a set of four explaining the Hicks-Hansel model of Keynes' theory of Aggregate Demand, specifically the IS-LM interpretation. This model is very important to short run macroeconomics and attempts to explain shifts in the aggregate demand curve.

These topics are usually taught in an intermediate Macroeconomics class, and these videos are intended as a visual aid to further your understanding of the models.

This video covers the demand for money, the supply of money, the LM Curve, the factors affecting its slope and position and formula for the LM Curve

These videos are based on the following textbook:

Dornbusch, Fischer, Startz, Atkins and Sparks. (2005). Macroeconomics, 7th Canadian Edition. McGraw-Hill

Category:

Education

Tags:

• LM Curve
• Money Market
• Demand for Money
• Supply of Money

[XYZ313313]

which textbook do you recommend most?

1. Dornbusch, Fischer, Startz, Atkins and Sparks or

2. Mankiw?

only one please

[micoschwartz]

@XYZ313313

Mankiw is more renowned.

[micoschwartz]

***Correction: At the 4:50 mark, when 'h' interest sensitivity is being decreased I say "income sensitivity", but it should be "interest sensitivity"

[micoschwartz]

Translate by clicking on the up arrow

[XYZ313313]

@micoschwartz I read Mankiw during university years... It has "Principles of Macroeconomics", I did not like it, because it was just words, but yesterday after you recommended Mankiw, I checked "Macroeconomics", was really good, but I have already ordered Dornbusch (11e). Do you think Dornbush math as good as Mankiw (7e)?

[pransh777]

Helpful thanks!

[redplum007]

thank you though.

[redplum007]

you are too fast.

[MrLegendalive]

Nice effort. but please, the speed with which you explain it doesn't suits that of giving lecture. please be a bit calm and slower. Thank you.

[sooyee3650]

Thank You A Lot!!

[Androopy1]

At 5.14, is the yellow text meant to say 'A decrease in the interest sensitivity of demand for real money leads to an increase in the slope of the LM curve?'