IS LM Model Explained (English)

IS curve of this Hicksian obtained from the classical theory of interest by incorporating as to how what various levels of income will be given the family of saving schedule and the investment demand schedule but does not determine the equilibrium income level. LM curve derived from the Keynesian Liquidity Preference theory by incorporating income in similar fashion. It gives us what the various interest rates will be give the family of money supply and the family of LP schedules. Combining the two gives the model where equilibrium interest rate and income are simultaneously determined.#YOUCANLEARNECONOMICS

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