define IS curve. explain its dervation graphically
Answers
Answered by
27
Answer:
The IS curve represents all combinations of income (Y) and the real interest rate (r) such that the market for goods and services is in equilibrium. ... The graphical derivation of the IS curve is given below. Consider an initial equilibrium in the goods market where r = 5% and income is equal to Y0.
Answered by
0
Answer:
The IS curve represents all combinations of income (Y) and the real interest rate (r) such that the market for goods and services is in equilibrium. ... The graphical derivation of the IS curve is given below. Consider an initial equilibrium in the goods market where r = 5% and income is equal to Y0.
Similar questions