8. Shifts of the IS curve

Interacting with graphs to learn more about shifting the IS curve

The IS curve represents the combinations of output and the interest rate that lead to equilibrium in the goods market. As with any graph drawn by economists, many variables have been held constant including taxes and government expenditures. Let's see how changes in fiscal policy (taxes and government expenditures) affect the position of the IS curve.

Objectives

Click on the 'Exploration' link above to continue.