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Business Economics IS–LM model
Question:
Explain the connection between the goods and services market and the money market.
IS-LM
The equilibrium in the goods and services market is expressed by IS curve, and the LM curve represents the equilibrium in the money market. The interesection of both the curves estabishes equilibrium in the economy.
Answer and Explanation:1
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The goods and services market and the money market both are simultaneously affecting each other in the economy. In the goods and services market,...
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LM Curve in Macroeconomics | Overview, Equation & Graph
from
Chapter 3/ Lesson 45
121K
Learn about the LM curve and see how it is used in macroeconomics. Understand how to use the LM curve equation and see examples of the LM curve on graphs.
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