LM LM* i b a d c IS IS* Y/P Start at a. If M => LM to LM* and a movement to c. Start at a. If T or G => IS to IS* and a movement to b. Which point is better for banks? For you? If both M and G or T => movement to d. Advanced concepts. We have drawn the LM and IS in terms of i and Y on the axis. Can derive these curves assuming other variables. For this section =domestic price of one unit of the foreign currency. The usual LM sets all partials except = 0. Assume on vertical axis and on horizontal axis => LM curve goes from upper left to lower right. General IS curve model. Chapter 9. Inflation: Its Causes and Cures Core Inflation = inflation rate for all products other than food and energy. is due to a continuous increase in demand due to government deficits or increases Demand Pull Inflation in money supply.
LM LM* i b a d c IS IS* Y/P Start at a. If M => LM to LM* and a movement to c. Start at a. If T or G => IS to IS* and a movement to b. Which point is better for banks? For you? If both M and G or T => movement to d. Advanced concepts. We have drawn the LM and IS in terms of i and Y on the axis. Can derive these curves assuming other variables. For this section =domestic price of one unit of the foreign currency. The usual LM sets all partials except = 0. Assume on vertical axis and on horizontal axis => LM curve goes from upper left to lower right. General IS curve model. Chapter 9. Inflation: Its Causes and Cures Core Inflation = inflation rate for all products other than food and energy. Demand Pull Inflation is due to a continuous increase in demand due to government deficits or increases in money supply.