Chapter 5: Goods and Financial Market ithe s-LMModel .5-1 The Goods market and the is relation 5-2: Financial Market and the lM relation e5-3: The Is-LM Model Exercise 54 Using a Policy Mⅸ 95-5: Adding Dynamics 5-6: Does the IS-LM Model Actually Capture What Happens in the Economy?
Chapter 5: Goods and Financial Market :The IS-LM Model 5-1:The Goods Market and the IS Relation 5-2:Financial Market and the LM Relation 5-3:The IS-LM Model :Exercise 5-4:Using a Policy Mix 5-5: Adding Dynamics 5-6:Does the IS-LM Model Actually Capture What Happens in the Economy?
5-1The Goods Market and the S Relation e Summarize what we learned in chapter 3 e Investment. Sales and the interest rate ●The| S curve e Shifts in the s curve e Summarize
5-1:The Goods Market and the IS Relation Summarize what we learned in chapter 3 Investment, Sales, and the interest rate The IS curve Shifts in the IS Curve Summarize
Summarize what we learned in chapter 3 e We characterized equilibrium in the goods market as the condition that production, Y, be equal to the demand for goods, Z We called this condition the is relation because it can be reinterpreted as the condition that investment be equal to saving
Summarize what we learned in chapter 3 We characterized equilibrium in the goods market as the condition that production,Y,be equal to the demand for goods, Z. We called this condition the IS relation, because it can be reinterpreted as the condition that investment be equal to saving
Summarize what we earned in chapter 3 e We defined demand as the sum of consumption, investment, and government spending. We assumed that consumption was a function of disposable income (income minus taxes), and took investment spending government spending, and taxes as given The equilibrium condition was given by Y=C(Y-D+l+G
Summarize what we learned in chapter 3 We defined demand as the sum of consumption,investment,and government spending. We assumed that consumption was a function of disposable income(income minus taxes), and took investment spending, government spending, and taxes as given. The equilibrium condition was given by Y=c(Y-T)+I+G
Summarize what we learned in chapter 3 Using this equilibrium condition, we then looked at the factors that changed equilibrium output. We looked at particular at the effects of changes in government spending and of shifts in consumption demand
Summarize what we learned in chapter 3 Using this equilibrium condition, we then looked at the factors that changed equilibrium output. We looked at particular at the effects of changes in government spending and of shifts in consumption demand