Product-market equilibrium

Product-market equilibrium

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 5: IS-LM Model of Income Determination

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of product-market equilibrium.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• IS-curve derivation
• Product-market equilibrium

Detailed Microsyllabus

1. IS derivation

   1. Goods-market equilibrium between output and planned spending.
   2. Interest-sensitive investment.
   3. Income adjustments at alternative interest rates.

2. IS interpretation

   1. Slope and economic reasoning.
   2. Movements along the curve versus shifts.
   3. Fiscal and expenditure factors changing its position.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.