IS-LM Model

Start with the model

The mind map Keynes + IS-LM Analysis brings together the IS and LM models, the Keynesian Cross, planned spending and actual spending. Start by following those branches and noting the terms you want to explore further. The map also includes graphs of deflationary and inflationary gaps.

For another view, open the mind map on aggregate demand and the IS-LM model. It covers the Keynesian Cross, equilibrium and changes in government spending. It also sets out assumptions about the price level and the economy.

Practice with the quizzes

After looking at a map, try the quiz that asks what the IS curve represents and when it shifts. Use the questions to check how you interpret the curve, then return to the map to look again at the related ideas.

Next, try the quiz on expansionary fiscal policy with no change in the money supply. It asks about the effects on GDP, the interest rate and private sector investment spending. Work through the question, then use a map to organize the relationships you need to think about.

Connect the topic to the unit

IS-LM Model is a section of the Aggregate Demand and Supply unit in Economics. The mind map on applying the model offers a connection within the unit: it covers deriving the aggregate demand curve from the IS-LM model, as well as fluctuations in national income.

For a different perspective, IS-LM-BP: An Inquest covers models of the open economy. You can also use the flashcards on this page alongside the maps and quizzes as you study.

Choose a map, then try a quiz to put its ideas into practice.