What Is The IS-Curve?
The IS curve represents the equilibrium in the goods market — where total output equals total demand.
It shows all combinations of interest rates and real GDP where investment equals saving.
“IS” = Investment = Saving → the core balance behind the curve.
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Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this post, I want to give you a first introduction into the goods market, presented through the IS-Curve. In future posts, I will conclude this rather simple and abstract model into the bigger picture. I hope this may help to understand economics a bit better in an easy way.
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