The IS-LM model is a simplification of the interrelationship between selected economic variables. The model consists of a number of en- dogenous variables (those variables whose values are determined inside the model) and a number of exogenous variables (those variables whose values are determined outside the model). The labour markets mostly consider the relationships between prices, expected prices, unemploy- ment among other macroeconomic variables. (a) Explain endogenous and exogenous variables in the IS-LM model as well as the labour markets, derive the AD-AS model
The IS-LM model is a simplification of the interrelationship between selected economic variables. The model consists of a number of en- dogenous variables (those variables whose values are determined inside the model) and a number of exogenous variables (those variables whose values are determined outside the model). The labour markets mostly consider the relationships between prices, expected prices, unemploy- ment among other macroeconomic variables. (a) Explain endogenous and exogenous variables in the IS-LM model as well as the labour markets, derive the AD-AS model
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The IS-LM model is a simplification of the interrelationship between
selected economic variables. The model consists of a number of en-
dogenous variables (those variables whose values are determined inside
the model) and a number of exogenous variables (those variables whose
values are determined outside the model). The labour markets mostly
consider the relationships between prices, expected prices,
ment among other
(a) Explain endogenous and exogenous variables in the IS-LM model
as well as the labour markets, derive the AD-AS model.
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