BEST USED ON A COMPUTER. NOT YET MOBILE COMPATIBLE. Adjust the sliders to see real-time changes in the macroeconomic equilibrium. Use the dropdown to adjust the components of each curve.
Higher = Investment curve shifts up
Higher = Savings curve shifts up
Shifts Money Supply line left/right
Shifts Money Demand curve up/down
Shifts Full Employment line left/right
The economy is currently producingatits full employment level of output (Y* = 50).
The IS-LM model is a macroeconomic tool that shows the relationship between interest rates and real output in the goods and services market and the money market. The IS curve represents the equilibrium in the goods market, while the LM curve represents the equilibrium in the money market.
Use the sliders on the left to adjust different economic variables and observe how they affect the equilibrium in both markets.