IS and LM curves, their characteristics, and limitations to understand macroeconomic equilibrium in goods and money markets.

When presenting shifts in the IS and LM curves, instructors should explain the size of these shifts as measured both horizontally and vertically. Students will observe that the relationship between ...

The "IS-LM" model provides the typical textbook framework to analyze the characteristics of the economy that determine the effectiveness of monetary and fiscal policy. The author provides a graphical ...