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HomeMIT 14.02 Principles of Macroeconomics, Spring 2023Lecture 11: The IS-LM-PC Model
Lecture 11: The IS-LM-PC Model
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The IS (Investment Saving), LM (Liquidity Preference - Money Supply), and PC (Philips Curve) model looks at the dynamics of output and inflation. It relates to the central bank policy decision to adjust the inflation and real interest rate in the economy.