The IS–LM Model: Fiscal Policy, Monetary Policy, and Macroeconomic Equilibrium

Last Updated May 26, 2026

The IS–LM model is one of the clearest frameworks for understanding how fiscal policy, monetary policy, interest rates, and aggregate demand interact to determine short-run macroeconomic equilibrium. It shows that output is not determined by the goods market alone, nor by the money market alone. Instead, short-run equilibrium emerges where spending decisions, investment behavior, money demand, liquidity conditions, and policy choices meet.

Originally developed by John Hicks in 1937 as a formal interpretation of John Maynard Keynes’s The General Theory of Employment, Interest and Money, the IS–LM model translates Keynesian macroeconomics into a two-market framework. The IS curve represents equilibrium in the goods market. The LM curve represents equilibrium in the money market. Their intersection shows the level of output and the interest rate consistent with both markets at the same time.

Although modern macroeconomics uses more complex dynamic models, the IS–LM framework remains valuable because it makes policy interactions visible. It shows why fiscal expansion can raise output but also raise interest rates, why monetary expansion can lower interest rates and increase output, why policy effects depend on the slope of each curve, and why macroeconomic stabilization requires understanding both demand conditions and financial conditions.

The IS–LM model should not be treated as a complete description of the economy. It abstracts from inflation dynamics, expectations, distribution, banking structure, international capital flows, supply constraints, financial instability, and long-run growth. But its simplicity is also its strength. By reducing the short-run macroeconomy to a goods-market equilibrium condition and a money-market equilibrium condition, it creates a disciplined way to ask how policy shifts affect output and interest rates.

What the IS–LM Model Explains

The IS–LM model explains how the goods market and the money market jointly determine short-run output and interest rates. The model begins from a Keynesian assumption: in the short run, prices and wages may adjust slowly. Because prices do not immediately clear all markets, changes in demand can affect real output and employment.

The model has two central relationships. The IS curve shows combinations of output and interest rates where planned spending equals output. The LM curve shows combinations of output and interest rates where money demand equals money supply. The intersection of the two curves gives the short-run macroeconomic equilibrium.

The model is useful because fiscal policy and monetary policy affect different parts of the system. Fiscal policy shifts aggregate demand directly through government spending, taxes, and transfers. Monetary policy shifts financial conditions through money supply, liquidity, interest rates, and credit conditions. The IS–LM framework shows how those policies interact rather than treating them as isolated tools.

For example, expansionary fiscal policy may raise output by increasing demand, but it may also raise interest rates by increasing money demand as output rises. Higher interest rates can reduce private investment, partially offsetting the expansion. Expansionary monetary policy may lower interest rates and support investment, increasing output. If fiscal and monetary policy move together, the result may differ from either policy acting alone.

The model therefore provides a compact language for macroeconomic policy analysis: shifts in IS, shifts in LM, changes in equilibrium output, changes in equilibrium interest rates, and differences in policy effectiveness depending on the slopes of the curves.

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Keynes, Hicks, and Short-Run Equilibrium

The IS–LM model was introduced by John Hicks in his 1937 article “Mr. Keynes and the ‘Classics’: A Suggested Interpretation.” Hicks sought to formalize parts of Keynes’s argument in The General Theory by showing how goods-market equilibrium and money-market equilibrium could be represented in a single diagram.

Keynes had argued that economies could remain below full employment when aggregate demand was insufficient. He emphasized investment, expectations, liquidity preference, interest rates, and the possibility that unemployment could persist without automatic adjustment to full employment. Hicks translated this argument into a framework in which income and interest rates are determined together.

The IS–LM model became one of the central tools of mid-twentieth-century macroeconomics because it showed how policy could influence output in a world of sticky prices. It gave economists a way to analyze fiscal stimulus, monetary expansion, crowding out, liquidity preference, and the interaction of goods and financial markets.

Later macroeconomic models became more dynamic, microfounded, expectation-driven, and open-economy oriented. New Keynesian models, DSGE frameworks, financial-friction models, and IS–MP or IS–LM–PC models extend or replace parts of the older apparatus. Yet the IS–LM model remains valuable as an introductory and interpretive tool because it makes the basic logic of short-run stabilization visible.

The model is best understood not as a final theory of the economy, but as a conceptual map. It identifies relationships that more advanced models continue to analyze: how spending depends on interest rates, how money and liquidity affect financial conditions, how policy shifts demand, and how output responds when prices are slow to adjust.

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Aggregate Demand and the Short Run

The IS–LM model begins with aggregate demand. In the short run, if prices are fixed or slow to adjust, output responds to spending. Firms produce more when demand rises and less when demand falls. Employment, income, and investment therefore depend on the level of demand in the economy.

Aggregate demand can be represented through the national income identity:

In a closed-economy version of the model, the net-export term is often omitted so that output depends on consumption, investment, and government spending. Consumption depends on disposable income. Investment depends negatively on the interest rate because higher borrowing costs make investment projects less attractive. Government spending and taxation are policy variables.

The interest rate is therefore a bridge between goods markets and financial markets. It affects investment and aggregate demand, but it is also determined by money-market conditions. This is why the IS–LM model does not treat the interest rate as external to the real economy. The interest rate is part of the mechanism through which monetary and fiscal conditions affect output.

In this framework, a fall in investment demand shifts the IS curve left. An increase in government spending shifts it right. A monetary expansion shifts the LM curve right or downward. A rise in money demand shifts it left or upward. The resulting equilibrium depends on how both markets adjust together.

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The IS Curve: Goods-Market Equilibrium

The IS curve represents equilibrium in the goods market. “IS” stands for investment-saving, but in the standard Keynesian goods-market version it can be understood more broadly as the set of output and interest-rate combinations where planned spending equals output.

A simple goods-market equilibrium condition can be written as:

The IS curve slopes downward because higher interest rates tend to reduce investment. When borrowing becomes more expensive, firms are less likely to finance new capital projects, households may reduce interest-sensitive purchases, and aggregate demand falls. Lower demand means lower equilibrium output in the goods market.

A stylized linear version of the IS relationship can be written as:

Fiscal policy affects the IS curve directly. An increase in government spending, a reduction in taxes that raises disposable income, or transfers that increase consumption can raise aggregate demand at each interest rate. This shifts the IS curve to the right. Fiscal contraction shifts it left.

The size of the shift depends on multipliers. If households spend much of any additional income, the fiscal multiplier may be larger. If households save the extra income, imports rise, taxes offset income gains, or interest rates crowd out investment, the multiplier may be smaller. Even within the simple IS–LM model, fiscal-policy effects depend on behavioral assumptions and financial conditions.

The IS curve therefore shows why fiscal policy is not just an accounting change. It changes the demand schedule facing firms and households. But its final effect on output also depends on what happens in the money market, because the interest rate may change when output changes.

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The LM Curve: Money-Market Equilibrium

The LM curve represents equilibrium in the money market. “LM” stands for liquidity-money. It shows combinations of output and interest rates where the demand for real money balances equals the supply of real money balances.

A simple money-market equilibrium condition can be written as:

The LM curve slopes upward in the standard model. When output rises, households and firms conduct more transactions, so they demand more money balances. If the central bank holds the money supply fixed, the interest rate must rise to equilibrate money demand and money supply.

A stylized linear version of the LM relationship can be written as:

Monetary policy affects the LM curve. When the central bank expands the money supply, increases liquidity, lowers policy rates, or otherwise eases financial conditions, the LM curve shifts right or downward. At a given level of output, the interest rate is lower. Lower interest rates can stimulate investment and raise aggregate demand.

When monetary policy tightens, the LM curve shifts left or upward. At a given level of output, interest rates are higher. Higher interest rates reduce investment and interest-sensitive spending, lowering equilibrium output.

The slope of the LM curve matters. If money demand is highly sensitive to interest rates, the LM curve is flatter and fiscal policy can raise output with less upward pressure on interest rates. If money demand is less interest-sensitive, the LM curve is steeper and fiscal expansion may produce stronger interest-rate increases, creating more crowding out.

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Macroeconomic Equilibrium

Macroeconomic equilibrium in the IS–LM model occurs where the IS curve and LM curve intersect. At that point, the goods market and money market are both in equilibrium. Planned spending equals output, and money demand equals money supply.

Using the simple linear version of the model:

Substituting the LM equation into the IS equation gives the equilibrium output level:

The equilibrium interest rate is then:

These equations show why the model is useful computationally. Each policy scenario can be treated as a change in one or more parameters. Fiscal expansion increases \(F\). Monetary expansion increases \(M_s\). A steeper LM curve increases \(\gamma\). Greater interest sensitivity of investment increases \(\beta\). Each change alters equilibrium output, equilibrium interest rates, and the size of policy multipliers.

The model’s simplicity also makes its assumptions visible. It holds prices fixed, treats behavior linearly, and abstracts from expectations, inflation, open-economy flows, financial instability, and distribution. Those are serious limitations, but they are also why the model is a useful starting point: it clarifies the basic demand-side and financial-market logic before adding complexity.

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Fiscal Policy in the IS–LM Model

Expansionary fiscal policy shifts the IS curve to the right. This can occur through increased government spending, reduced taxes, or transfers that increase household consumption. At each interest rate, aggregate demand is higher, so goods-market equilibrium requires higher output.

In the standard upward-sloping LM case, fiscal expansion raises both output and interest rates. Output rises because demand increases. Interest rates rise because higher output increases money demand. If the money supply is unchanged, interest rates must rise to equilibrate the money market.

This is the source of crowding out in the IS–LM model. Higher interest rates reduce private investment, offsetting part of the fiscal expansion. Fiscal policy still raises output in the standard case, but the increase may be smaller than it would be if interest rates did not rise.

The strength of crowding out depends on curve slopes. If investment is highly sensitive to interest rates, a given interest-rate increase reduces investment substantially. If the LM curve is steep, fiscal expansion produces a larger interest-rate increase. Together, a steep LM curve and interest-sensitive investment can weaken fiscal-policy effects.

If the LM curve is flat, fiscal policy may be more powerful. A flat LM curve means interest rates do not rise much when output increases. In that case, fiscal expansion generates less crowding out. This is one reason fiscal policy can be especially important when monetary policy is constrained or when the economy is in a liquidity-trap-like environment.

The IS–LM model therefore helps explain why the same fiscal policy can have different effects in different macroeconomic environments. During a deep recession with low rates and idle capacity, fiscal expansion may raise output with limited crowding out. During an economy near capacity, fiscal expansion may raise interest rates or inflation pressure more strongly.

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Monetary Policy in the IS–LM Model

Expansionary monetary policy shifts the LM curve to the right or downward. In the traditional money-supply version of the model, the central bank increases the money supply. With more real money balances available, the interest rate required to equilibrate money demand is lower at each level of output.

Lower interest rates stimulate investment and interest-sensitive spending. As investment rises, aggregate demand increases. Output rises through the goods market, and the economy moves to a new equilibrium with higher output and lower or changed interest rates depending on the shape of the curves.

Contractionary monetary policy works in the opposite direction. If the central bank reduces liquidity or raises policy rates, the LM curve shifts left or upward. Interest rates rise, investment falls, aggregate demand weakens, and equilibrium output declines.

Monetary-policy effectiveness depends on the slope of the IS curve. If investment is highly responsive to interest rates, monetary easing can produce a large output response. If investment is not very interest-sensitive, lower rates may have weaker effects. This is one reason monetary stimulus may disappoint when firms are pessimistic, households are overindebted, or banks are reluctant to lend.

Monetary policy also depends on financial transmission. The IS–LM model treats the interest rate as a central variable, but real economies involve many rates, credit spreads, balance sheets, risk premiums, banks, capital markets, and expectations. When financial systems are impaired, lowering the policy rate may not fully translate into borrowing, investment, or consumption.

Still, the IS–LM model captures a key intuition: monetary policy affects output partly by changing interest rates and liquidity conditions, which influence investment and aggregate demand. It shows why central banks matter for short-run stabilization even though they do not directly produce goods and services.

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Crowding Out, Policy Mix, and Curve Slopes

The IS–LM model is especially useful for understanding policy mix. Fiscal policy and monetary policy can reinforce or offset one another. Expansionary fiscal policy combined with accommodative monetary policy can raise output more while limiting interest-rate increases. Fiscal expansion combined with monetary tightening may produce smaller output gains and higher interest-rate pressure.

Crowding out occurs when fiscal expansion raises interest rates and reduces private investment. In the IS–LM model, this happens because higher output increases money demand. If the money supply is fixed, interest rates rise. Higher rates reduce investment, partially offsetting the fiscal stimulus.

The degree of crowding out depends on three main factors. First, the slope of the LM curve matters. A steep LM curve means interest rates rise strongly when output increases. Second, the slope of the IS curve matters. If investment is very interest-sensitive, higher interest rates reduce demand significantly. Third, monetary accommodation matters. If the central bank expands liquidity as fiscal policy expands demand, the LM curve can shift right, limiting the rise in rates.

The model therefore shows why fiscal and monetary authorities are not independent in practice. A fiscal expansion has different effects depending on the central bank’s response. A monetary expansion has different effects depending on fiscal conditions and private demand. Stabilization policy is a policy mix, not a set of isolated levers.

The slopes of the curves also reveal different macroeconomic regimes. A steep IS curve means demand is not very responsive to interest rates, so monetary policy may be weaker. A flat IS curve means demand is highly interest-sensitive, so monetary policy may be powerful. A steep LM curve means fiscal policy creates stronger interest-rate pressure. A flat LM curve means fiscal policy creates less crowding out.

These slope-based insights are one reason the IS–LM model remains pedagogically powerful. It does not merely say that policy shifts curves. It asks what kind of economy the policy is operating in.

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Liquidity Traps and Model Limits

The IS–LM model also helps explain the idea of a liquidity trap. In a liquidity-trap-like situation, interest rates are very low and money demand may become highly interest-sensitive. The LM curve becomes very flat. Monetary expansion may have limited additional effect on interest rates or output because people are willing to hold additional money rather than spend or invest it.

In that case, fiscal policy may become more powerful. If the LM curve is flat, fiscal expansion can raise output without causing much increase in interest rates. Crowding out is limited because the money market absorbs higher output with little rate pressure.

This logic became important in discussions of economies facing zero lower bound or effective lower bound conditions. When central banks have limited room to reduce rates, fiscal policy, forward guidance, asset purchases, credit support, and public investment may become more important. The IS–LM model offers a simplified way to visualize why monetary policy can become constrained and why fiscal policy may matter more in such environments.

However, the model has important limits. It does not contain inflation dynamics unless extended. It does not model expectations in a modern forward-looking way. It does not distinguish among different interest rates, credit spreads, bank lending channels, financial frictions, or risk premiums. It usually assumes fixed prices in the short run. It often abstracts from international capital flows and exchange rates.

Modern macroeconomics has therefore moved beyond the basic IS–LM framework for many research purposes. But the model remains useful because it gives students and readers a clear first map of fiscal-monetary interaction. It shows what later models complicate: the relationship among demand, interest rates, liquidity, output, and policy.

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IS–LM and Stabilization Policy

The IS–LM model is closely connected to stabilization policy. Stabilization policy seeks to reduce damaging economic fluctuations by supporting demand during recessions, restraining overheating when necessary, and maintaining conditions for employment, price stability, and financial stability.

In a recession caused by weak aggregate demand, the IS curve may shift left. Output falls and unemployment rises. Fiscal policy can shift IS back to the right. Monetary policy can shift LM right or downward, reducing interest rates and supporting investment. A coordinated response can raise output more effectively than either tool alone, depending on the shape of the curves and the condition of the economy.

In an inflationary or overheated economy, policymakers may seek the opposite. Fiscal consolidation or reduced demand pressure can shift IS left. Monetary tightening can shift LM left or upward, raising rates and reducing investment. These policies may reduce inflation pressure, but they can also reduce output and employment. The model therefore clarifies the trade-offs policymakers face.

The IS–LM framework also explains why policy design depends on diagnosis. If the economy is below potential because demand is weak, expansionary policy may be appropriate. If output is constrained by supply bottlenecks, fiscal or monetary expansion may raise prices more than real output. If monetary transmission is weak, fiscal policy may need to play a larger role. If fiscal policy risks strong crowding out, monetary accommodation or better targeting may matter.

As part of the Economic Systems series, the IS–LM model serves as a bridge between conceptual macroeconomics and institutional policy design. It helps readers understand why recession management, business-cycle stabilization, fiscal capacity, monetary credibility, and financial conditions belong in the same analytical frame.

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Measuring and Modeling IS–LM Scenarios

The IS–LM model is often drawn as a diagram, but it can also be modeled computationally. A simple linear version allows readers to calculate how changes in fiscal policy, monetary policy, investment sensitivity, and money-demand sensitivity affect equilibrium output and interest rates.

A computational workflow can compare baseline, fiscal expansion, monetary expansion, coordinated policy, steep-LM cases, flat-LM cases, and liquidity-trap approximations. This makes the conceptual diagram more transparent. Readers can inspect whether output rises, whether interest rates rise or fall, how large the multiplier is, and how crowding out changes across scenarios.

The companion repository for this article uses Python, R, Stata, SQL, and Julia to create a small reproducible IS–LM modeling package. Python builds scenarios and figures. R replicates summaries and visualization. Stata provides an applied-economics replication workflow. SQL stores parameters and scenario results. Julia solves the same model using linear algebra.

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Python Workflow: IS–LM Equilibrium

Python is useful for turning the IS–LM diagram into a reproducible scenario model. The following compact example solves equilibrium output and interest rates for a simple linear IS–LM system.

# python/is_lm_equilibrium.py
#
# Purpose:
# Solve a simple linear IS-LM model and compare policy scenarios.

from dataclasses import dataclass
import pandas as pd

@dataclass
class ISLMScenario:
    scenario: str
    alpha: float
    beta: float
    gamma: float
    fiscal_shift: float
    money_shift: float

def solve_is_lm(alpha: float, beta: float, gamma: float,
                fiscal_shift: float, money_shift: float) -> tuple[float, float]:
    """
    IS: Y = alpha - beta*r + fiscal_shift
    LM: r = gamma*Y - money_shift
    """
    output = (alpha + beta * money_shift + fiscal_shift) / (1 + beta * gamma)
    interest_rate = gamma * output - money_shift
    return output, interest_rate

scenarios = [
    ISLMScenario("baseline", 1000, 25, 0.02, 0, 0),
    ISLMScenario("fiscal_expansion", 1000, 25, 0.02, 100, 0),
    ISLMScenario("monetary_expansion", 1000, 25, 0.02, 0, 4),
    ISLMScenario("coordinated_expansion", 1000, 25, 0.02, 100, 4),
    ISLMScenario("flat_lm_fiscal_policy", 1000, 25, 0.005, 100, 0),
    ISLMScenario("steep_lm_fiscal_policy", 1000, 25, 0.05, 100, 0),
]

records = []

for item in scenarios:
    output, rate = solve_is_lm(
        item.alpha,
        item.beta,
        item.gamma,
        item.fiscal_shift,
        item.money_shift
    )

    records.append({
        "scenario": item.scenario,
        "equilibrium_output": output,
        "equilibrium_interest_rate": rate,
        "fiscal_multiplier": 1 / (1 + item.beta * item.gamma),
        "monetary_multiplier": item.beta / (1 + item.beta * item.gamma),
    })

results = pd.DataFrame(records)

baseline_output = results.loc[
    results["scenario"] == "baseline",
    "equilibrium_output"
].iloc[0]

baseline_rate = results.loc[
    results["scenario"] == "baseline",
    "equilibrium_interest_rate"
].iloc[0]

results["delta_output_from_baseline"] = (
    results["equilibrium_output"] - baseline_output
)

results["delta_interest_from_baseline"] = (
    results["equilibrium_interest_rate"] - baseline_rate
)

print(results)

This compact workflow shows how a diagram can become a transparent computational model. A fiscal expansion raises output and may raise interest rates. A monetary expansion lowers the interest rate associated with a given level of output and can raise output through investment. A flat LM curve strengthens the output effect of fiscal policy by reducing crowding out. A steep LM curve weakens fiscal effects by producing stronger interest-rate pressure.

The full GitHub repository expands this into scenario tables, policy multipliers, crowding-out indicators, diagrams, SQL tables, R visualization, Stata replication, and Julia linear-algebra solutions.

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R Workflow: IS–LM Policy Scenarios

R is useful for summarizing policy scenarios and producing clear graphics. The following compact workflow reads an IS–LM scenario table and plots how policy changes move output and interest rates relative to the baseline.

# r/is_lm_analysis.R
#
# Purpose:
# Summarize and visualize IS-LM policy scenarios.

library(readr)
library(dplyr)
library(ggplot2)

base_dir <- normalizePath(file.path(dirname(sys.frame(1)$ofile), ".."))
scenario_path <- file.path(base_dir, "outputs", "is_lm_scenario_results.csv")
output_dir <- file.path(base_dir, "outputs")

scenarios <- read_csv(scenario_path, show_col_types = FALSE)

summary_table <- scenarios |>
  group_by(lm_slope_type) |>
  summarise(
    scenarios = n(),
    avg_equilibrium_output = mean(equilibrium_output),
    avg_equilibrium_interest_rate = mean(equilibrium_interest_rate),
    avg_fiscal_multiplier = mean(fiscal_multiplier_model),
    avg_monetary_multiplier = mean(monetary_multiplier_model),
    avg_crowding_out_indicator = mean(crowding_out_indicator),
    .groups = "drop"
  )

write_csv(summary_table, file.path(output_dir, "is_lm_r_results.csv"))

scenario_plot <- ggplot(
  scenarios,
  aes(
    x = delta_interest_from_baseline,
    y = delta_output_from_baseline,
    label = scenario
  )
) +
  geom_point(size = 2.5) +
  geom_text(vjust = -0.6, size = 3) +
  geom_hline(yintercept = 0, linewidth = 0.3) +
  geom_vline(xintercept = 0, linewidth = 0.3) +
  labs(
    title = "IS-LM Policy Scenarios",
    subtitle = "Output and interest-rate changes relative to baseline equilibrium",
    x = "Interest-rate change from baseline",
    y = "Output change from baseline"
  ) +
  theme_minimal()

ggsave(
  filename = file.path(output_dir, "is_lm_scenarios_r.png"),
  plot = scenario_plot,
  width = 9,
  height = 5,
  dpi = 300
)

print(summary_table)

The R workflow helps readers compare scenarios visually. Fiscal policy, monetary policy, coordinated expansion, steep-LM cases, flat-LM cases, and liquidity-trap approximations can be placed in the same output-interest-rate space. This makes it easier to see how policy effectiveness depends on the structure of the model.

The purpose is not to claim that a simple linear model can forecast the economy. The purpose is to make policy mechanics explicit: what moves, why it moves, and which assumptions determine the size and direction of the effect.

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GitHub Repository

The article body includes selected computational examples so the conceptual and mathematical argument remains readable. The full repository contains the expanded research infrastructure: Python IS–LM equilibrium solvers, R scenario analysis, Stata applied-economics replication workflows, SQL model-parameter tables and queries, Julia linear-algebra solutions, documentation, reproducible scenario data, and article-ready figures and tables.

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Related Reading

• Economic Systems
• Stabilization Policy: Fiscal and Monetary Tools for Managing Economic Fluctuations
• Limits of Stabilization Policy: Fiscal Policy, Monetary Policy, and Macroeconomic Constraints
• Business Cycles: Economic Expansions, Recessions, and Macroeconomic Stability
• Economic Resilience: Why Recessions Occur and How Economies Recover

Further Reading

• Blanchard, O. (2021). Macroeconomics. 8th edn. Pearson.
• Carlin, W. and Soskice, D. (2015). Macroeconomics: Institutions, Instability, and the Financial System. Oxford: Oxford University Press.
• Hicks, J. R. (1937). Mr. Keynes and the “Classics”: A Suggested Interpretation. Econometrica, 5(2), pp. 147–159.
• Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.
• Mankiw, N. G. (2024). Principles of Economics. 10th edn. Cengage.
• Romer, D. (2019). Advanced Macroeconomics. 5th edn. McGraw-Hill.
• Snowdon, B. and Vane, H. R. (2005). Modern Macroeconomics: Its Origins, Development and Current State. Cheltenham: Edward Elgar.
• Taylor, J. B. (1993). Discretion versus Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, 39, pp. 195–214.

References

• Board of Governors of the Federal Reserve System. (2021). Monetary Policy: What Are Its Goals? How Does It Work? Available at: https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm
• Board of Governors of the Federal Reserve System. (2025). What economic goals does the Federal Reserve seek to achieve through its monetary policy? Available at: https://www.federalreserve.gov/faqs/what-economic-goals-does-federal-reserve-seek-to-achieve-through-monetary-policy.htm
• Federal Reserve Bank of St. Louis. (n.d.). FRED Economic Data. Available at: https://fred.stlouisfed.org/
• International Monetary Fund. (n.d.). Fiscal Policy: Taking and Giving Away. Finance & Development: Back to Basics. Available at: https://www.imf.org/en/publications/fandd/issues/series/back-to-basics/fiscal-policy
• International Monetary Fund. (n.d.). Monetary Policy: Stabilizing Prices and Output. Finance & Development: Back to Basics. Available at: https://www.imf.org/en/publications/fandd/issues/series/back-to-basics/monetary-policy
• MIT OpenCourseWare. (2023). Lecture 5: IS-LM Model | Principles of Macroeconomics. Available at: https://ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/resources/1402-sp23-lecture-5-v2_mp4/
• MIT OpenCourseWare. (2023). Lecture 7: An Extended IS-LM Model | Principles of Macroeconomics. Available at: https://ocw.mit.edu/courses/14-02-principles-of-macroeconomics-spring-2023/resources/1402-sp23-lecture-7-v2_mp4/
• National Bureau of Economic Research. (n.d.). Business Cycle Dating. Available at: https://www.nber.org/research/business-cycle-dating