2024年6月20日 · What Is the IS-LM Model? The IS-LM model, which stands for “investment-saving” (IS) and “liquidity preference-money supply” (LM), is a Keynesian macroeconomic model that shows how the market...

The LM curve shows the combinations of interest rates and levels of real income for which the money market is in equilibrium. It shows where money demand equals money supply. For the LM curve, the independent variable is income and the dependent variable is the interest rate.

IS-LM模型 （英語： Investment—Saving / Liquidity preference—Money supply model，投資-儲蓄/流動性偏好-貨幣供給模型）是一个總體經濟模型，表現出貨幣市場的利率，與商品及服務市場的實質商品產出之間的關係。 IS和LM曲线的交点是产品市场和货币市场两者同时达到均衡的标志。 亦称一般均衡。 新古典綜合學派 用此來解释 凯恩斯 的 宏观经济学 理论思想。 凯恩斯认为政府行为可以有效地干预经济发展。 IS-LM模型和他表述的基本理论散见于各种宏观经济学理论。 …

The below mentioned article provides an overview on IS-LM Curve. The goods market equilibrium schedule is the IS curve (schedule). It shows combinations of interest rates and levels of output such that planned (desired) spending (expenditure) equals income.

The LM curve gives the combinations of income and the interest rate for which the demand for money (or desired liquidity) equals the money supply and hence for which the domestic economy is in asset or stock equilibrium.

2023年9月14日 · The IS-LM model is made up of two curves: the IS curve, and the LM curve. These curves are mapped in a graph, where the vertical y-axis represents the interest rate (r) and the horizontal x-axis the output or GDP (Y) in an economy (Figure 1).

The IS LM curve illustrates real income levels and interest rate combinations (when the money market is in equilibrium). An upward sloping curve depicts the relationship between finance and the economy. Each point on the curve represents a specific equilibrium position in the money market based on a certain income level.

2021年2月20日 · The LM curve is upward sloping and depicts equilibrium in the money-markets with a fixed money-supply, and varying levels of national income and interest rates. The slope of the LM curve depends on the responsiveness of money demand to those changes in national income and interest rates.

In order to derive the LM curve which shows money market equilibrium, we have to find combinations of r and Y that equate money demand with a fixed money supply. The LM curve is a locus of points showing all combinations of r and Y which equilibrate the money market. Fig. 9.13 shows how the LM curve is derived.

Putting the two component curves of the IS-LM model together gives us the Keynesian short-run model of economic management. The intersection of the two curves gives us the equilibrium level interest rate and output rate in the economy i.e. stability in …