y What Is-curve ? Doriva af.
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Answers
Answer:
A curve is a figure which ends at starting point.
Explanation:
It is two types--
•open curve
•Closed curve
In Macroeconomics,IS curve stands for Investment Savings Curve and shows the relationship between the output or GDP and aggregate consumption level,investment level and government purchase in closed economy.In the case of open economy,net export is also added.
Explanation:
The Investment Savings curve(IS curve) shows how national output or GDP of a country if there are any modifications or fluctuations in the aggregate consumption,investment,government purchases and net export of the country.Aggregate consumption implies the overall consumption of goods and services by buyers and consumers in the economy.Aggregate investment indicates the capital or financial investment by shareholders and investors for business operation in the economy.Government purchases denotes the overall government expenditure on all the public goods and services in the economy and finally,net export shows the difference between the overall export and import level in the country.Therefore,national output or GDP has a positive relationship with all of these components meaning that as any of these increase,the GDP also increases consequently and vie versa.This also explains the reason behind upward sloping of the IS curve.