Which of the following best describes the concept of the IS-LM model in macroeconomics?
1
It analyzes the interaction between the goods market and the labor market.
2
It examines the relationship between inflation and unemployment.
3
It illustrates the equilibrium in the goods market and the money market.
4
It focuses on the determination of exchange rates and international trade flows.
5
It explores the impact of fiscal policy on the balance of payments.