IS/LM

IS/LM Model



IS/LM Model

Introduction

The IS/LM model is basically dealing the tool of macroeconomic and demonstrating the relationship between the real output and interest rate in the money market and the services market. In the general equilibrium there is intersection between the IS and LM curve (Hicks, 1980). This model is basically one of the most widely and pragmatic model used and it is highly criticizing the theoretical point. The model is very effective usage in the shorter decision over both fiscal and monetary policy. In this paper I will discuss the “US home building jumps in the 5 year high ...