ISLM Video Tutorial

http://www.macrotutor.weebly.com
This video is the last in a set of four explaining the Hicks-Hansel model of Keynes' theory of Aggregate Demand, specifically the IS-LM interpretation. This model is very important to short run macroeconomics and attempts to explain shifts in the aggregate demand curve.
These topics are usually taught in an intermediate Macroeconomics class, and these videos are intended as a visual aid to further your understanding of the models.

This video covers finding simultaneous equilibrium in the goods market and the money market by combining the Is and LM curves. This leads to a method for deriving the Aggregate Demand Curve. The video also covers the economy's response to monetary and fiscal policy as predicted by this model.

These videos are based on the following textbook:

Dornbusch, Fischer, Startz, Atkins and Sparks. (2005). Macroeconomics, 7th Canadian Edition. McGraw-Hill

Category:

Education

Tags:

• ISLM
• IS-LM
• Aggregate Demand
• Macroeconomics

[micoschwartz]

This is just a powerpoint captured with camtasia.

[micoschwartz]

New: Translate by clicking up arrow

[micoschwartz]

Lawlroy is correct:

government spending is a fiscal tool

money supply is a monetary tool

[2323andrew2323]

Well done. You did a better job in 20 minutes than my professor did in a semester! Thanks for all of the help!

[udhelhc]

Thank you very much!!

[XYZ313313]

what kind of presentation software did you use?

[bryce2197]

@Krugmanistheking I understand your your point about why Krugman used the IS-LM curve with regard to a liquidity trap. I'm just asking a more elementary textbook question with regard to the origins of the two curves that represent IS-LM. Were they created seprately by the two schools of thought, and then later combined in a graph together by someone to try and sythesize the two schools. Or, was the entire IS-LM created in whole by an economist at once like the supply and demand model?

[yankeessuck309]

@ne1l007 words cannot describe how gay you are for flaming an is-lm tutorial vid. just stfu and get over yourself

[yankeessuck309]

much appreciated good sir.

[jackhermiz]

I m new 2 macroeconomics i got sum economics education now i m working on the macroeconomics is there a harder economy then the 1 we live in now ?

[bryce2197]

Interesting question here. I understand both of the Schools of Economics, Monetarism and Keynsianism. The question, is the IS-LM model just a graphical illustration combining of the two theories?? From what I understand, if you are purely a Monetarist or Keynesian you only recognize one side over the other and ignore one of them? If you were a pure Monetarist you would say the AD model doesn't exist? If you were pure Keynesian the Money market model doesn't exist?