Difference:

First, the methods are different.

1, AD-AS model: it combines total demand and total supply on a coordinate diagram.

2.IS-LM model: It reflects the relationship between national income and interest rate under the condition of simultaneous equilibrium of product market and money market.

Second, the purpose is different.

1, AD-AS model: 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.

2.IS-LM model is an important tool for macroeconomic analysis and a theoretical framework for describing the relationship between product market and money market.

Third, the related formulas are different.

1, AD-AS model: short-term aggregate demand-aggregate supply model equation is AD=f (p) SAS=f(p)AD=SAS, and long-term aggregate demand-aggregate supply model equation is AD=f (p)? LAS=Y f AD=LAS= Yf .

2.IS-LM model: Y (national income) =C (consumption) +I (investment) +G (government purchase, often regarded as a fixed value).

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