Chapter11工广-精选课件(公开).pptVIP

Aggregate Demand II:Applying the IS -LM Model In this chapter, you will learn… how to use the IS-LM model to analyze the effects of shocks, fiscal policy, and monetary policy how to derive the aggregate demand curve from the IS-LM model The Simple Algebra of the IS-LM Model and the Aggregate demand curve Equilibrium in the IS -LM model The IS curve represents equilibrium in the goods market. 11-1 Explaining Fluctuations with the IS-LM model Fiscal policy: An increase in government spending Fiscal Policy: A tax cut Monetary policy: An increase in M Other Shocks in the IS -LM model IS