Question

What is meant by ‘shift’ of a curve. Derive an expression for the same.

Answer 1

it shows usally past tense to present tense

Answer 2

In this article we will discuss about the derivation and properties of IS and LM curve, explained with the help of suitable diagrams.

The goods market equilibrium schedule is the IS curve (schedule). It shows combination of interest rates and levels of output such that planned (desired) spending (expenditure) equals income. The goods-market equilib­rium schedule is a simple extension of income determination with a 45° line diagram (of the Keynesian type). Now, investment is no longer fully exogenous, but is also determined by the rate of interest (which is a policy variable).