短期的货币政策，其变化在is – lm模型中显示，适合于价格水平固定的情况。根据短期的固定价格水平，可以解释国民收入的变化，也可以解释总需求曲线的变化。这一工具对于研究波动和货币政策转向实现稳定是有用的。货币政策在考虑这些短期固定变量时，不会考虑较长时期内的实时波动。因此，政策的变化可能最终只关注导致稳定的短期变量(Smith, 2014)。通货膨胀和其他因素的影响可能不被考虑，在较长时期内，货币政策可能是中性的。总需求或AD定义为市场对最终产品和商品的总需求。这通常是假设一个固定的时间和价格。因此，一个国家资本的任何形式的增长都将在资本输出总量上产生变化。在AD-AS曲线中，显示了货币政策对总需求的影响。总需求曲线是对GDP的需求，也称为有效需求。按照紧缩的货币政策，货币供应量减少，那么GDP也会减少。随着利率上升，消费者最终会减少支出。在AD-AS曲线图中，总需求向右平移。
另一方面，在上述扩张性货币政策下，货币供应量的增加会导致GDP的增加(infinite, 2016)。中国将会有更多的支出，下图中的总需求曲线将会向右平移。因此，更高的价格和更高的经济产出将出现在这个国家。除了与is – lm模型提供的短期前景可以说对GDP增加和减少的理解反映在紧缩货币供应的减少和扩张性的货币增长变量也过于依赖经济不确定性的说,一年。利率和通货膨胀会影响经济中的资本，但除此之外，还会受到其他因素的影响，如该国的劳动力供应、技术等。当涉及到较长时期的经济增长时，这些是主要的决定因素(Smith, 2004)。货币政策可能不考虑这些因素，因为它超出了货币政策的范围。为了显示经济增长的稳定和更多，货币政策在短期内是有用的。然而，从长远来看，它可能不会促进经济增长。也没有迹象表明它可以成为多年来有效的经济增长政策的一部分(Smith, 2004)。
The monetary policy for the short run whose changes is shown in the IS–LM model is suited for the situation where price levels are fixed. Depending on the fixed price levels for the short run, the changes in the national income can be explained and also the aggregate demand curve shifts. The tool is useful to study fluctuations and the monetary policy shifts towards achieving stabilization. Monetary policy in considering those short term fixed variables would not consider the fluctuations in real time over a longer period. So the policy changes might end up looking only at the short term variables that result in stabilization (Smith, 2014). Effects of inflation and more might not be considered and for longer periods the monetary policy might appear to be neutral. The Aggregate demand or the AD is defined as the total demand for final products and goods in the market. This is usually assumed for a fixed time and price only. Any form of increase in capital of a country will hence create changes in the aggregate sending. In the AD-AS curve, the monetary policy and impact on Aggregate demand is shown. The Aggregate demand curve is demand for GDP and will also be called as the effective demand. As per the contractionary monetary policy that the money supply is decreased then there will also be a decrease in the GDP. Consumer will end up spending less as the interest rates go up. In the AD-AS curve diagram, the Aggregate demand is shifted to the right.
On the other hand, in the case of the expansionary monetary policy as discussed above the money supply increase will lead to the increase of GDP (Boundless, 2016). There will be more spending in the country, aggregate demand curve in the diagram below will now shift to the right. Higher prices and a higher economic output will hence be present in the country now. In addition to the short term outlook as presented along with IS-LM it can be said that understanding of the GDP increase and decrease as mirrored in the contractionary decrease of monetary supply and the expansionary increase of monetary variables are also too dependent on economic uncertainties of say, a year. Interest rates and inflation will affect the capital in the economy, but in addition there will also be effects of other factors such as labour supply in the country, technology and so on. These are main determinants when it comes to economic growth over a longer period of time (Smith, 2004). The monetary policy might not account for these factors as it is out of the scope of the monetary policy. In showing stabilization of economic growth and more the monetary policy is useful in the short term. However, in the long run it might not contribute to economic growth. There are also no indications to suggest that it can become part of an efficient economic growth policy over the years (Smith, 2004).