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Interactive IS-LM Model

IS-LM Model is a fundamental model based on Keynesian macroeconomics. IS-LM model allows us to understand more fully the sources of business cycles and what can be done by the government to dampen, or ideally, to eliminate business cycles.

This interactive tool allows us to re-discover the IS-LM Model by applying factors according to economic conditions and government policies. The following links will help you understand how these different economic factors affect the movement of the interest rate and the real GDP.