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What is IS-LM Model and Aggregate Demand Overview about?

This chapter introduces the IS-LM model, which is used to analyze the determination of income and interest rates in the short run when prices are fixed. It covers the Keynesian cross model of aggregate demand and its relationship to the IS curve. It also covers the theory of liquidity preference and the LM curve. The chapter shows how the IS-LM model can be used to analyze the effects of fiscal and monetary policy on output and interest rates.

Author

cadeyare1201

Language

EN