The Equilibrium in Product and Money market We now can put the IS and LM curve 2 together Y =LA+G+f(OI 1c(1-t) kAshi=m This system equation determines the equilibrium condition in both product and money market 2The Equilibrium in Product and Money Market • We now can put the IS and LM curve together: • This system equation determines the equilibrium condition in both product and money market k Y hi M A G f i c t Y − = + + − − = [ ( )] 1 (1 ) 1