Introduction The objective of this chapter is to put the 2o previously discussed two models-the models of product market and money market --together and discuss how output and interest rate is determined The model presented in this chapter is often called the IS-LM model (Is: the product o market model, LM the money market model).Introduction • The objective of this chapter is to put the previously discussed two models -- the models of product market and money market --together and discuss how output and interest rate is determined • The model presented in this chapter is often called the IS-LM model (IS: the product market model; LM the money market model)