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If you have never heard of ISLM model click here. Freely modifiable MS Word version of the graph. Data for all the variables in ISLM model


5.The advantages of this representation This
graph representation has two groups of the advantages: Depending on the depth
of knowledge, the verbal suggestion required in reading the scheme can
range from a simple statement directly arising from the graph up to elaborated
weighted argumentation on sources, justifications and effects of complex
dynamics. The lack of mathematical difficulties is particularly suitable to keep reader's attention high on economics, not on formal geometric devices. In a theoretical
perspective, the graph representation is: The notion of general economic equilibrium is unnecessary for interpreting the graph. Similarly, the graph representation is: a.
compatible with linear relationships between variables; Moreover, the graph
allows an easy introduction of new variables (e.g. oil price for
influencing the price level). 

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