LM – Curve Derivation with Diagram
What is the LM Curve? L = Liquidity demand (money demand) M = Money supply The LM Curve shows the relationship between interest rate {r} and income/output (y) when the money market is in equilibrium.…
IS Curve Definition & Derivation with Diagram
IS- Curve (Investment-Savings Curve) The IS in the IS curve stands for Investment-Savings. It is a component of the IS-LM macroeconomic model. The IS-Curve represents the real sector/product market equilibrium of the economy, which shows the various combinations…