This case study familiarizes the basic foundation of the workhorse IS/LM model for a closed economy (i.e., one that doesn't participate in international trade). The note derives the core components of the model and derives predictions of effects of fiscal and monetary policy.
There is an assumption that price level should remain fixed and aggregate demand determines production. This note precedes a more comprehensive treatment of aggregate demand and aggregate supply discovered in following technical notes.
The IS LM Model case study solution
PUBLICATION DATE: September 02, 2014 PRODUCT #: UV6846-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
The Deutsch-Casella Joint Venture and [Yellow Tail] ® Wines: Trading Up or Trading Down?
Star Appliance Company B
Interview with Anders Byriel and Mads Nygard: Kvadrat, Video
General Electric’s Expansion in the Middle East
Gazi (A): The past, present, and future of an international Albanian entrepreneur
Tim Harkness: Starting Over
Your Company May Unwittingly be Conducting Business with Human Traffickers: How Can You Prevent This?
Should You Have a Global Strategy?
The AS/AD Model
Diving Into the New Innovation Landscape
