General Equilibrium in the IS- LM Model In general equilibrium, all markets satisfy their respective equilibrium conditions. –Labor, Goods, and Money
{"Image DocumentName": "General Equilibrium in the IS-LM Model", "Image ImageDescription": "In general equilibrium, all markets satisfy their respective equilibrium conditions. Labor, Goods, and Money Markets Must all be in equilibrium. The logic of general equilibrium: The labor market determines output. Given output (income) the goods market then determines an interest rate. Given output, the interest rate, and the expected inflation rate, then the money market determines the price level.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}