(1) Department of Aktuarial Science, Institut Teknologi Statistika dan Bisnis Muhammadiyah Semarang, Jl. Prof Dr. Hamka, KM 1, Ngaliyan Semarang, 50181, Indonesia (2) Department of Mathematics Education, Al-Bahjah Islamic College Cirebon, Jl. Pangeran Cakrabuana Blok Gudang Air, Sendang, Sumber, Cirebon Regency, 45611, Indonesia (3) Department of Science and Technology, Universitas Nasional Karangturi, Raden Patah Street No. 182-192 Rejomulyo, Semarang 50127, Indonesia (*) Corresponding Author
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.
____________________________________________________________________________ Journal of Intelligent Computing and Health Informatics (JICHI) ISSN 2715-6923 (print) | 2721-9186 (online) Organized by Department of Informatics Faculty of Engineering Universitas Muhammadiyah Semarang
W : https://jurnal.unimus.ac.id/index.php/ICHI E : jichi.informatika@unimus.ac.id, ahmadilham@unimus.ac.id
