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What is Equilibrium in Goods and Money Markets about?

This document provides an overview of goods and financial markets equilibrium. It discusses the IS curve, which shows the relationship between interest rates and income where aggregate demand equals aggregate supply. It also discusses the LM curve, which shows the relationship between interest rates and income where money demand equals money supply. The overall equilibrium is found at the intersection of the IS and LM curves, where both goods and financial markets are simultaneously in equilibrium.

Author

pbunpbun

Language

EN