Deriving Aggregate demand (AD) Curve From IS and LM Curve

The IS-LM model is a macroeconomic model that describes the relationship between interest rates and real output in the goods and services market (IS curve) and the money market (LM curve). The aggregate demand curve can be derived from the IS-LM model by showing how changes in the interest rate affect both the goods and services market and the money market, and how these changes in turn affect the overall level of economic activity (i.e. aggregate demand).
The IS curve represents the relationship between the interest rate and real output in the goods and services market. It shows that as the interest rate increases, investment spending decreases, and as a result, real output decreases. The LM curve represents the relationship between the interest rate and the level of income in the money market. It shows that as the interest rate increases, the demand for money decreases, and as a result, the level of income decreases.
When both the IS and LM curves are combined, they form the aggregate demand curve, which shows the relationship between the interest rate and the overall level of economic activity. As the interest rate increases, aggregate demand decreases, and as the interest rate decreases, aggregate demand increases.
In this video, we will go through the steps of deriving the aggregate demand curve from the IS and LM curves. We will also explain how changes in government spending, taxes, and the money supply affect the IS and LM curves, and how these changes in turn affect the aggregate demand curve.
Overall, this video is useful for students and professionals who want to understand how macroeconomic factors such as interest rates, government spending, taxes, and money supply affect the economy, and how these factors are interconnected in the IS-LM model.

[@ECONMATHS]

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[@YtComedyEditz]

100% understood first time, sir ❤

[@karovanbraeckel8370]

Thank you. Very helpfull. Small remark: LM doesn't shift right, it shifts downwards (my professor is strict about this)

[@ECONMATHS]

Thanks for the rectification

[@Mou.132]

Very smoothly explained! Thank you sir.

[@saloniii7360]

Sir, you are a phenomenal teacher

[@CadselCarl]

Thank you so much ...very good explanation

[@ECONMATHS]

You are welcome

[@saima.sultana1614]

Thank u for ur good lecture❤

[@Hakahah_o]

How does the increase in money supply shift the LM curve rightward?

[@anjuliteronpi6870]

Please explain derivation of aggregate supply also Sir...

[@kewitothemax]

Do you have a video about aggerate supply

[@qunnnnnnn85]

great help, thank you!

[@ECONMATHS]

My pleasure

[@priyanshu7791]

Good one.

[@arifahmad4646]

Excellent sir

[@StaceysImages]

Great!! Thanks!!

[@diwu4125]

thank you! very good video

[@anjuliteronpi6870]

Why IS curve is constant Sir..

[@AcheampongSamuel-ye8su]

Because Price is not part of the autonomous spending which shifts the IS but it determines the money supply; affecting only the LM.

[@Zahduo]

Thank you so much

[@HolyGrahamGodlydAgormeda-rr4hd]

Please what's the Full name of IS and LM?

[@Tuberyour]

IS = Investment Saving
LM= Liquidity money

[@AcheampongSamuel-ye8su]

@@Tuberyour investment savings and liquidity preference or money market

[@durgaprasadsarangi5668]

AS darivation?

[@LilyAkter-gs2jv]

Banglai bolen