1. IS-LM model, definitions, derivation and assumptions. 2. Short run versus Long run, differences and how they affect the assumptions behind the IS-LM model. 3. Derivation of the IS-LM relations, and factors shifting them. Graphical and functional representation. 4. Solving equilibrium Y using the IS-LM model, functionally, and graphically. Finding the multiplier. Showing the output effects of changes in G and T using the functional form. Compare tax multiplier and government expenditure multiplier. Effects of differences in MPC across different income groups. 5. Fiscal and Monetary policy and the IS-LM model. Factors affecting IS-LM, and equilibrium i and Y. 6. Balanced budget multiplier. How do the effects of fiscal policy differ for different income groups? 7. The policy mix (compare fiscal and monetary policy composition during the 80s, 90s, and 2000s using IS-LM model). (briefly answer it)