CHAPTER ELEVEN Application of IS-LM Model macroeconomics N. Gregory Mankiw College of Management, HUST
, IS-LM Application of IS-LM Model slide 1
1. IS-LM 2. 3. IS-LM 4. IS-LM 5. IS-LM 6. 7. 8. Application of IS-LM Model slide 2
IS-LM IS. r LM = C ( T) + I( r) + G LM. M P L( r, ) r 1 = IS r. 1 Application of IS-LM Model slide 3
IS-LM = C ( T) + I( r) + G M P = L( r, ) r LM : G / T : M IS-LM. r 1 1 IS Application of IS-LM Model slide 4
(1 MPC) T, T G r LM IS 2. r 2 r 1 2. 1. MPC 1 MPC T r G. 1. 1 2 2. IS 1 IS 2 Application of IS-LM Model slide 5
: M 1. M > 0 LM ( ) 2. r 1 r 2 r LM 1 LM 2 3.,. 1 2 IS Return Application of IS-LM Model slide 6
: (M, G T ) : M.. Application of IS-LM Model slide 7
Fed G > 0 G. Fed : 1. M 2. r 3. > 0, G : Application of IS-LM Model slide 8
1: M G, IS r LM 1 Fed M, LM. : = 2 1 r 2 r 1 1 2 IS 1 IS 2 r = r2 r1 Application of IS-LM Model slide 9
2: r G, IS r, Fed M LM. : = 3 1 r = 0 r 1 r LM 1 r 2 LM 2 1 2 3 IS 2 IS 1 Application of IS-LM Model slide 10
3: G, IS r LM 2 LM 1, Fed M LM. : = 0 r 3 r 2 r 1 1 2 IS 1 IS2 r = r3 r1 Application of IS-LM Model slide 11
1. IS 1 by G 1 MPC. 2., 2. 3., 1 is smaller than 1 MPC G r 2 r 1 r 1 2 LM IS 1 IS 2 Application of IS-LM Model slide 12 3. 1.
from the DRI macroeconometric model / G / T Fed Fed 0.60 1.93 0.26 1.19 Return Application of IS-LM Model slide 13
IS-LM IS :. : C I / C Application of IS-LM Model slide 14
IS-LM LM :. : ATM Internet Application of IS-LM Model slide 15
: IS-LM IS-LM 1.. 2.. a. IS-LM r. b. C, I,. Return Application of IS-LM Model slide 16
IS-LM, IS-LM., P LM. P Application of IS-LM Model slide 17
AD r LM(P 2 ) AD : P (M/P ) r 2 r 1 LM(P 1 ) LM IS r P 2 1 I P 2 P 1 AD 2 1 Application of IS-LM Model slide 18
AD Fed : M LM r r 1 r 2 LM(M 1 /P 1 ) LM(M 2 /P 1 ) r I P 1 2 IS P P 1 AD 2 1 2 AD 1 Application of IS-LM Model slide 19
AD r LM ( G / T ) r 2 : r 1 IS 2 T C IS P 1 2 IS 1 P P 1 Return 1 2 AD 2 AD 1 Application of IS-LM Model slide 20
IS IS-LM and AD-AS AS Recall from Chapter 9:., > < = Application of IS-LM Model slide 21
IS r LRAS LM(P 1 ) IS IS and AD,. P LRAS IS 2 IS 1 P 1 SRAS 1 AD 1 AD 2 Application of IS-LM Model slide 22
IS, < r P P 1 LRAS LRAS LM(P 1 ) IS 1 IS 2 SRAS 1 AD 1 AD 2 Application of IS-LM Model slide 23
IS, <, P, SRAS M/P, LM r P P 1 LRAS LRAS LM(P 1 ) IS 1 IS 2 SRAS 1 AD 1 AD 2 Application of IS-LM Model slide 24
IS r LRAS LM(P 1 ) LM(P 2 ) IS 1, P, SRAS M/P, LM P P 1 P 2 LRAS IS 2 SRAS 1 SRAS 2 AD 2 Application of IS-LM Model slide 25 AD 1
IS = r P P 1 P 2 LRAS LM(P 1 ) LM(P 2 ) IS 1 IS 2 LRAS SRAS 1 SRAS 2 AD 1 AD 2 Application of IS-LM Model slide 26
: M a. IS-LM AD-AS. b. Fed M.. c.. d.? r P P 1 LRAS LRAS LM(M 1 /P 1 ) IS SRAS 1 Return Application of IS-LM Model slide 27 AD 1
240 30 220 25 billions of 1958 dollars 200 180 160 GNP 20 15 10 percent of labor force 140 5 120 1929 1931 1933 1935 1937 1939 0 Application of IS-LM Model slide 28
: IS IS :, IS Application of IS-LM Model slide 29
: IS 1. C 1929.10-12: S&P 500 fell 17% 1929.10-1933.12: S&P 500 fell 71% 2. 1920 3., Application of IS-LM Model slide 30
: LM : 1929-33 M1 25%., : 1. 1929-31 P, M/P. 2., LM. Application of IS-LM Model slide 31
: : 1929-33 P 25% M,.? Application of IS-LM Model slide 32
: : P (M/P ) LM Pigou : P (M/P ) C IS Application of IS-LM Model slide 33
: : - P ( ),,, IS, Application of IS-LM Model slide 34
: : π e r i I I = I (r ) Application of IS-LM Model slide 35
( ) : Fed M.... Return Application of IS-LM Model slide 36
Application of IS-LM Model slide 37
Application of IS-LM Model slide 38
Return Application of IS-LM Model slide 39
1. IS-LM : M, G, T, P : r, IS : r LM : r Application of IS-LM Model slide 40
2. AD P IS-LM. P (M/P ) r I IS,, AD LM, AD IS LM AD Application of IS-LM Model slide 41
End Application of IS-LM Model slide 42