IS–LM model

The IS-LM model is an economic framework that illustrates the interaction between the goods market and the money market in an economy. The model was developed by John Hicks and Alvin Hansen in the 1930s and is based on the work of John Maynard Keynes. ### Key Components of the IS-LM Model: 1. **IS Curve**: - The IS curve stands for "Investment-Savings.