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  1. 14.02 Principles of Macroeconomics: IS-LM Model. Goods Market. IS curve represents the equilibrium in the goods market: C + I + G + NX. Recall the definition of private savings S (hh) = Y – T – C. Recall the definition of national savings S = S (hh) + T – G. Combining them. (2) S = Y – C – G.

  2. We interpret the IS-LM model dierently, namely as an independent short-run model in its own right, based on the approximation that both wages and prices are set in advance by agents operating in imperfectly competitive markets and being hesitant regarding frequent or large price changes.

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  3. Dec 1, 2004 · While no longer central to the graduate training of most macroeconomists or to cutting-edge macroeconomic research, the IS-LM model continues to be a mainstay of undergraduate textbooks,...

  4. Macroeconomics: Intro and the IS-LM Model. 1These slides are NOT a substitute for chapters 2-5 of the book. They are meant to give you a more coincise and analytical presentation of the IS-LM model but many aspects of the model that are discussed in the book are not in these slides, and we shall assume you have read the book.

  5. The IS-LM Model 109 Chapter 6 Financial Markets II: The Extended IS-LM Model 131 The Medium Run 155 Chapter 7 The Labor Market 157 Chapter 8 The Phillips Curve, the Natural Rate of Unemployment, and Inflation 177 Chapter 9 From the Short to the Medium Run: The IS-LM-PC Model 197 The Long Run 217 Chapter 10 The Facts of Growth 219

  6. Lecture Notes. Notes for lecture sessions 1–7 (PDF - 1.1MB) Financial Crisis and Our Models (PDF) Introduction and the IS-LM Model (PDF) Explaining C. Romer Numbers (PDF) Medium Run (PDF) U.S. Trade Balance and Current Account in 2009 (PDF) Fiscal Policy (PDF) Time Inconsistency and the Inflation Bias (PDF)

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  8. Jun 10, 2024 · The basis of the IS-LM model is an analysis of the money market and an analysis of the goods market, which together determine the equilibrium levels of interest rates and output in the economy, given prices.

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