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Answer to Question #200173 in Macroeconomics for mapaseka
Question #200173
mathematically and theoretically explain the difference between the is curve and the lm curve
Expert's answer
The IS curve depicts the set of all levels of interest rates and output (GDP) at which total investment (I) equals total saving (S). ... The LM curve depicts the set of all levels of income (GDP) and interest rates at which money supply equals money (liquidity) demand.
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