Abstract

The IS-LM model was considered indispensable and had great importance and recital for macroeconomic phenomenon at theoretical as well empirical analysis since 1960s. Now a days the applications of IS-LM model has been greatly restricted to few situations depicts losing the fame. However it has been a crucial part of the basic principles and manuscripts of macroeconomics long since 1960s. Observing the reliability and existence of IS-LM model in case of Pakistan, for that purpose the study regressed two model; in first the basic model without including the model parameters and in second, with model parameters. The empirical results found the reliability and existence of IS-LM model.

Authors

1-Gulzar Ali
Assistant Professor,Department of Economics,Islamia College Peshawar, KP, Pakistan.

2-Said Zamin Shah
Assistant Professor,Department of Economics,Islamia College Peshawar, KP, Pakistan.

3-Ghulam Mustafa
Assistant Professor,Department of Economics and Business Administration,Division of Arts and Social Sciences, University of Education, Lahore, Punjab Pakistan.

Keywords

IS-LM model, planned expenditure, Descriptive Statistics, ARDL approach.

DOI Number

10.31703/ger.2019(IV-II).02

Page Nos

13-23

Volume

IV

Issue

II