Claim Missing Document
Check
Articles

Found 1 Documents
Search
Journal : Journal of Intelligent Computing and Health Informatics (JICHI)

An Enhanced IS-LM Business Cycle Model for Increasing Income in a Dynamic Economy Diana, Arista Fitri; Rahmasari, Shafira Meiria; Mahardika, Dhimas
Journal of Intelligent Computing & Health Informatics Vol 4, No 2 (2023): September
Publisher : Universitas Muhammadiyah Semarang Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26714/jichi.v4i2.13201

Abstract

This paper introduces an enhanced IS-LM business cycle model by integrating control parameters using the Pontiyagin Maximum Principle Method, aiming to maximize income within economic cycles. It develops a dynamic model incorporating import and consumption rates as controls, showcasing their impact on economic variables through simulations and analytical methodologies. The results exhibit a significant increase in income by up to 10% through the reduction of interest rates and capital stock. The efficiency of the proposed controls is visually demonstrated, providing a robust validation of the methodology used, aligning with prior research, and offering substantial insights into dynamic business cycle modelling for economic analysis and policy-making.