What does the is-lm framework mean, Microeconomics

Assignment Help:

What does the IS-LM framework mean? 

The IS-LM model helps us to understand the two opposing theories. The IS (investment/saving) curve shows equilibrium in product markets. The LM (liquidity/money) curve shows equilibrium in the money market. The point at which the two curves intersect is the only combination of output and interest rates (i.e., bond yields) where both the goods and financial markets are in balance. 

 


Related Discussions:- What does the is-lm framework mean

Proportion of workers, Proportion of Workers in Organised and Unorganised W...

Proportion of Workers in Organised and Unorganised Workers: Increasing share of employment in unorganised sector reflect the deterioration in the quality of employment because

?market demand curves, Market Demand Market Demand Curves - A curve ...

Market Demand Market Demand Curves - A curve which relates the quantity of a good that all the consumers in a market buy to price of that good. Determining Market Demand

Competitiveness in your industry, a) Collect costs, revenue data, or other ...

a) Collect costs, revenue data, or other data from the industry that you deem relevant. Describe how you would modify the data in order to make it relevant to decisions a manager m

Fundamental economy problem., how a capitalist system solves the three fund...

how a capitalist system solves the three fundamental economic problems

Determine value of root mean square error for dataset-anova, 1. The followi...

1. The following data consists of a 3 (age) x 2 (sex) natural design in which the proportion of pretend play between parents and infants changes as a function of age.  The DV (Y) i

Introduction, What is micro static analysis?

What is micro static analysis?

Economics, Economics- Definition Economics is the study of how societie...

Economics- Definition Economics is the study of how societies utilize limited resources to make valuable commodities and allocate them among diverse people. Microeconomics h

Distinguish between economic growth and economic development, Question 1: ...

Question 1: (a) Describe the different forms that foreign aid may take. (b) Does foreign aid lead to economic growth? Discuss. Question 2: (a) Distinguish between ec

What simplifying assumption does macroeconomic model make, What simplifying...

What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)?  The simplifying assumptions are:  1) The household and i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd