IS-LM Model
Money supply policy, Fiscal policy, Steering of Interest and Output
Inputs: Goods market
Fiscal policy
Government expenditures
Taxes
Full employment output
Autonomous consumption
Marginal propensity to consume
I-Fct: I at i=0
I-Fct: Slope (absolute)
Inputs: Money market
Money supply policy
Ceba: Money supply, nominal
Price level
L curve (M/P demand)
Factor for max Y
Interest sensitivity
Primary Outputs
Output, actual
Interest, actual.
%
Necess. Money supply,
Target: Y(FE)
Necess. Gov. expendit.,
Target: Y(FE)
Necess. Taxes,
Target: Y(FE)
Secondary Outputs
Money volume, real
Output gap
%
Investments