Explain how an economy attains equilibrium in the IS-Lm model.

In the IS-LM model, an economy reaches equilibrium when both the goods market and the money market are in balance simultaneously. This model provides a framework to analyze the interaction between the real economy, represented by the goods market (IS curve), and the financial market, represented by the money market (LM curve). The IS-LM model is used to understand how different factors, such as interest rates and income levels, affect national output and employment, and how the economy achieves equilibrium.

### The IS Curve

The IS curve represents the equilibrium in the goods market. It shows the combinations of income (or output) and the interest rate at which the total demand for goods equals the total supply, i.e., when the economy is in a state of goods market equilibrium. The goods market equilibrium condition can be expressed as:

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