WhisperEcho
Tue Sep 03 2024
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5 answers
1040
Is-LM the money market?
Could you please clarify for me if the IS-LM model is indeed synonymous with the money market? I understand that the IS curve represents the equilibrium in the goods and services market, while the LM curve depicts the equilibrium in the money market. However, I'm curious if the entire IS-LM framework is solely focused on the money market, or if it encapsulates a broader economic perspective that encompasses both the goods and services market and the money market in an interconnected manner. Your insights would be greatly appreciated.
