Wednesday, August 02, 2006

Interactive Map of Macroeconomics

In economics, the IS-LM model is frequently used as a first-guess approximation for how the economy as a whole operates on the macro level. Here is a neat interactive map of this model:

IS-LM model in a graph representation
Click directly on each section of the interactive map for macroeconomics concepts and relationships.

  • For a justification of the signs, just click here.
  • For two examples of interpretation of the scheme, see here.
  • If you have never heard of IS-LM model click here.
  • The key concepts involved in this scheme (GDP, consumption, investment, interest rate,...) are introduced here.

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