Is-lm model:

Is-LM model is a model that reflects the relationship between national income and interest rate under the condition of simultaneous equilibrium of product market and money market.

According to Hicks, liquidity preference (L) and money quantity (M) determine the equilibrium of money market, and the money quantity people hold depends on interest rate (I) and income (Y) at the same time.

Total demand-total supply model;

The total demand-total supply model (AD-AS model) refers to the combination of total demand and total supply on a coordinate map, which is used to explain the decision of national income and price level, investigate the reasons for price changes and how social economy can achieve the balance between total demand and total supply.