The IS/LM Model Case Solution
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 about GLOBAL BUSINESS
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