IS・LM Analysis

...Total demand is composed of consumption, investment, and government expenditure, but there is a macro relationship between consumption and national income in which the former depends on the latter and increases as the latter increases, so the core of this theory is that the size of national income is ultimately determined by the size of investment and government expenditure. In addition, the theory that adds the mechanism for determining interest rates through monetary supply and demand equilibrium and explains the simultaneous determination of national income and interest rates is called IS/LM analysis. Since then, macroeconomics has developed in two broad directions.

*Some of the terminology that refers to "IS/LM analysis" is listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…総需要は消費･投資･政府支出から構成されるが，消費と国民所得の間には，前者が後者に依存し，その増大とともに増加するというマクロ関係があるから，結局，国民所得の大きさは投資と政府支出の大きさにより決定されるというのが，この理論の骨子である。また，これに貨幣需給均衡による利子率決定機構を加え，国民所得･利子率の同時決定を説明する理論をIS･LM分析という。　その後，マクロ経済学は大別して二つの方向で発展してきた。…

※「IS・LM 分析」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報