23Chp20-Econ3310 - Expenditure Multiplier ISLM Model IS...

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Unformatted text preview: Expenditure Multiplier ISLM Model IS curve plots Y as a function of i and is downward sloping because for higher i , NX and I decrease and therefore equilibrium output Y is lower. Output tends to move toward points on the curve that satisfies the goods market equilibrium The IS curve combines the points at which the total quantity of goods produced equals the total quantity of goods demanded (Y = Y AD ) Equilibrium in the Goods Market: The IS Curve Aggregate Output ...
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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.

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