IS-LM model

Related BrainMass Solutions

• Changes in the shapes and locations of IS and LM curves

  What factor(s) causes the LM curve to shift? 4. In words what does the LM curve represent? 5. Is the interest rate we use in the IS-LM model real or nominal? How does your answer pertain to the shape of the aggregate supply curve? 1.

• Algebraic manipulation of IS-LM model

  Algebraic manipulation of IS-LM model to obtain the the IS and LM relations is provided.

• effects of monetary and fiscal policy

  In order study the Monetary and Fiscal Policy by the IS-LM Model, we will start with the basic model and the shifts with IS-LM curves.

• Calculate GDP, consumer price index and equilibrium

  What is the level of real Money Demand? PROBLEM 6 Using the IS-LM model to answer these questions: a. Suppose taxes increase.

• Where the IS and LM curves come from, and how to draw them

  The LM curve slopes up, and the IS curve slopes down. The LM curve is related to the money market. The IS curve is related to the goods market.

• The Keynesian Cross Model

  76333 The Keynesian Cross Model This is a power-point presentation that demonstrates the IS/LM MODEL as outlined in Mankiw's intermediate macroeconomics text.

• How to construct the IS/LM model from money & goods markets.

  219754 IS and LM Equations Consider the following numerical version of the IS-LM model in a closed economy: C-400+0.5Yd; I=700-4000r+0.1Y; G=200; Tp=200; Yd=Y-Tp, RLMD=.5Y-7500r; RLMS=500; X=M Find the equations for the IS Curve and LM Curve

• AD/AS, IS/LM, Keynesian Cross, Money Mkts. & fiscal policy.

  In the attached solution I describe the foundations of the AD/AS model. In other words how it is built up from the IS/LM model which depends on the money market and the Keynesian cross model.

• LM and IS model

  Equilibrium occurs at: Y = 1500 r = - 6 + .01 (1500) = 9% Use of the LM and IS model to find equilibrium interest rates and income.