The IS-LM Model

 

  1. Story behind IS-LM
    1. Fiscal Expansion
    2. Monetary Expansion
    3. Dynamics
  2. Exogenous Changes in Behavior
    1. Shift in Consumption
    2. Shift in Investment
    3. Shift in Demand for Money
  3. Other Exogenous Variables
    1. Taxes vs. Government purchases
    2. Price Level