facility noun (PLACE). âº [C] something such as a âplace, âbuilding, or âequipment used for a âparticular âpurpose or âactivity: The new âsports facility has a âswimming âpool. (Definition of facility from the Cambridge Academic Content Dictionary Â© Cambridge University Press).acility noun (PLACE). âº [C] something such as a âplace, âbuilding, or âequipment used for a âparticular âpurpose or âactivity: The new âsports facility has a âswimming âpool. (Definition of facility from the Cambridge Academic Content Dictionary Â© Cambridge University Press).
While economists cloak their views in the aura of science, what they actually do is make assumptions about the world, use those assumptions to build imaginary economies (known as models), and from those models generate conclusions.
Despite many shortcomings, the IS-LM model has been one of the main tools for macroeconomic teaching and policy analysis. The IS-LM model describes the aggregate demand of the economy using the relationship between output and interest rates. In a closed economy, in the goods market, a rise in interest rate reduces aggregate demand, usually investment demand and/or demand for consumer durables.