5-1.The Goods Market and the IS Relation 5-2: Financial Market and the LM Relation 5-3: The iS-LM- Model: Exercise 5-4: Using a Policy Mix 5-5: Adding Dynamics 5-6: Does the IS-LM Model Actually Capture What Happens in the Economy?
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)
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)