If net exports decrease by 250 and the mpc is 0.75, equilibrium aggregate output

The IS-LM model is a two-dimensional macroeconomic model that shows the relationship between output and interest rates in a closed economy over the short term. It's also known as the Hicks–Hansen model. The IS-LM model is a graph that shows the intersection of the IS and LM curves, which represent the short-term equilibrium between interest rates and output. The IS curve represents the combination of nominal income and nominal interest rates where investment and savings are equal. The LM curve represents the combinations of income and interest rates.  The IS-LM model is based on Keynesian... Show more

The IS-LM model is a two-dimensional macroeconomic model that shows the relationship between output and interest rates in a closed economy over the short term. It's also known as the Hicks–Hansen model.
The IS-LM model is a graph that shows the intersection of the IS and LM curves, which represent the short-term equilibrium between interest rates and output. The IS curve represents the combination of nominal income and nominal interest rates where investment and savings are equal. The LM curve represents the combinations of income and interest rates. 

The IS-LM model is based on Keynesian macroeconomics and was the dominant paradigm in macroeconomics from the 1950s to the 1970s. It was developed by economist John Hicks in 1937, after John Maynard Keynes published The General Theory of Employment, Interest and Money in 1936. 
The IS-LM model is a way to explain and distill Keynes' economic ideas. It's a model of aggregate demand in a closed economy. It assumes that actual expenditure equals both national income and total output. 
The IS-LM model is a short-run macroeconomic analytical construct that's been widely used to interpret macroeconomic policy. It's prominent in elementary and intermediate macroeconomic textbooks. 

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