The IS/LM Model Harvard Case Solution & Analysis


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.

PUBLICATION DATE: September 02, 2014 PRODUCT #: UV6846-HCB-ENG

This is just an excerpt. This case is aboutĀ GLOBAL BUSINESS

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The IS/LM Model