6. The labour market, represented by the FE line, is slower to move into equilibrium than either the goods market (represented by IS) or the financial market (represented by LM).. Keynesians believe that a short-run equilibrium where the goods and financial markets are in equilibrium (and so IS and LM intersect) can persist for possibly long periods of time. Classi- cal economists believe these equilibriums can, at best, last for only short periods of time.