Why It Matters?
The IS curve shows how fiscal tools like taxes or government spending interact with interest rates.
It’s the first step in seeing how policy choices influence national output.
In the full IS-LM model, the IS curve interacts with the LM curve to determine both interest rates and GDP.
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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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