What Shifts the IS Curve?
Increase in government spending → demand rises → IS curve shifts right
Increase in taxes or drop in consumer confidence → demand falls → IS curve shifts left
Shifts reflect changes in fiscal policy or other non-interest-rate demand factors.
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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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