LM curve
E282184
The LM curve is a macroeconomic relationship showing combinations of interest rates and income levels at which the money market is in equilibrium.
All labels observed (1)
| Label | Occurrences |
|---|---|
| LM curve canonical | 2 |
How this entity was disambiguated
This entity first appeared as the object of triple T2601488 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: LM curve Context triple: [IS-LM model, hasComponent, LM curve]
-
A.
IS-LM model
The IS-LM model is a macroeconomic framework that depicts the interaction between the goods market and the money market to determine equilibrium output and interest rates.
-
B.
Laffer curve
The Laffer curve is an economic theory that illustrates the relationship between tax rates and government revenue, suggesting that beyond a certain point higher tax rates reduce total revenue by discouraging work and investment.
-
C.
Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
-
D.
Fisher equation
The Fisher equation is a fundamental economic formula that relates nominal interest rates, real interest rates, and expected inflation, widely used in macroeconomics and finance.
-
E.
Taylor rule
The Taylor rule is a monetary policy guideline that prescribes how central banks should adjust interest rates in response to deviations of inflation and output from their target levels.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: LM curve Target entity description: The LM curve is a macroeconomic relationship showing combinations of interest rates and income levels at which the money market is in equilibrium.
-
A.
IS-LM model
The IS-LM model is a macroeconomic framework that depicts the interaction between the goods market and the money market to determine equilibrium output and interest rates.
-
B.
Laffer curve
The Laffer curve is an economic theory that illustrates the relationship between tax rates and government revenue, suggesting that beyond a certain point higher tax rates reduce total revenue by discouraging work and investment.
-
C.
Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
-
D.
Fisher equation
The Fisher equation is a fundamental economic formula that relates nominal interest rates, real interest rates, and expected inflation, widely used in macroeconomics and finance.
-
E.
Taylor rule
The Taylor rule is a monetary policy guideline that prescribes how central banks should adjust interest rates in response to deviations of inflation and output from their target levels.
- F. None of above. chosen
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
economic model component
ⓘ
macroeconomic concept ⓘ |
| assumes |
fixed nominal money supply in the short run
ⓘ
given price level in the short run ⓘ |
| canBe |
horizontal in a liquidity trap in some formulations
ⓘ
steep when money demand is interest-inelastic ⓘ |
| contrastsWith | IS curve which represents goods market equilibrium ⓘ |
| dependsOn |
income
ⓘ
interest rate ⓘ liquidity preference ⓘ money demand function ⓘ price level ⓘ real money supply ⓘ |
| describes | combinations of interest rates and income levels ⓘ |
| fullName | Liquidity preference–Money supply curve ⓘ |
| hasAxisVariable |
income on the horizontal axis
ⓘ
interest rate on the vertical axis ⓘ |
| hasShape | upward sloping in income–interest rate space ⓘ |
| intersects | IS curve to determine simultaneous goods and money market equilibrium ⓘ |
| isComplementedBy | IS curve ⓘ |
| isDefinedAs | locus of points where money demand equals money supply ⓘ |
| isDerivedFrom |
equality of real money balances supplied and demanded
ⓘ
equilibrium condition in the money market ⓘ |
| isExpressedIn | real terms using real money balances ⓘ |
| isPartOf |
IS–LM model
ⓘ
linked to:
IS-LM model
|
| isTaughtIn |
graduate macroeconomics courses
ⓘ
intermediate macroeconomics courses ⓘ |
| isUsedFor |
analysis of monetary policy
ⓘ
determination of equilibrium interest rate and income ⓘ short-run macroeconomic analysis ⓘ |
| isUsedIn |
Keynesian macroeconomics
ⓘ
policy simulations in simple macro models ⓘ |
| isUsedToAnalyze |
effects of monetary contraction
ⓘ
effects of monetary expansion ⓘ liquidity traps ⓘ |
| originatedIn | Keynesian tradition following John Maynard Keynes ⓘ |
| relates |
interest rate
ⓘ
output ⓘ real income ⓘ |
| represents | money market equilibrium ⓘ |
| shiftsLeftWhen | real money supply decreases ⓘ |
| shiftsRightWhen | real money supply increases ⓘ |
| shiftsWhen |
central bank changes nominal money supply
ⓘ
money demand parameters change ⓘ price level changes ⓘ |
| wasFormallyDevelopedBy |
Alvin Hansen
ⓘ
John Hicks ⓘ
linked to:
John R. Hicks
|
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: LM curve Description of subject: The LM curve is a macroeconomic relationship showing combinations of interest rates and income levels at which the money market is in equilibrium.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.