TABLE IS-LM MODEL

IS-LM Table

IS curve LM curve Y i
Increase in t –
contractionary
Moves to the
fisical policy Doesn’t change Decrease Decrease
left
(government) –
Market G&S (IS)
Decrease in t –
expansionary
Moves to the
fisical policy Doesn’t change Increase Increase
right
(government) –
Market G&S (IS)
Increase in G, TR
- expansionary
Moves to the
fisical policy Doesn’t change Increase Increase
right
(government) –
Market G&S (IS)
Decrease in G, TR
- contractionary
Moves to the
fisical policy Doesn’t change Decrease Decrease
left
(government) –
Market G&S (IS)
Increase in Ms –
expansionary
monetary policy Doesn’t change Moves down Increase Decrease
(CB) – money
marlet (LM)
Decrease in Ms –
contractionary
monetary policy Doesn’t change Moves up Decrease Increase
(CB) – money
marlet (LM)