IS-Curve

 

Home
Site Map
Add Term
Search
About Us
Contributors

IS-Curve

In the IS-LM model, the curve representing the combinations of national income and interest rate at which aggregate demand equals supply for all goods. It is normally downward sloping because a rise in income increases output by more than aggregate demand (through consumption), while a rise in the interest rate reduces aggregate demand through investment.



Similar Matches

Compensated demand curve

Compensated demand curve

A demand curve constructed under the assumption that demander's income is not held constant, but rather is varied to hold level of utility at a constant level. The change in consumer surplus calculated from particular compensated demand curves measures compensating variation and equivalent variation.


Environmental Kuznets Curve

Environmental Kuznets Curve

An inverse U-shaped relationship hypothesized between per capita income and environmental degradation. Named after the Kuznets Curve dealing with inequality. Idea due to Grossman and Krueger (1993).


Iso-price curve

Iso-price curve

A curve along which price is (or prices are) constant, most commonly in factor-price space where it shows the combinations of prices of factors consistent with zero profit in producing a good at a specified price of the good.


Stopping curve

Stopping curve

A curve showing the refunding rates for different times at which the expected value of refunding immediately equals the expected value of waiting to refund.


LM-Curve

LM-Curve

In the IS-LM model, the curve representing combinations of income and interest rate at which demand for money equals the money supply in the domestic money market. It is normally upward sloping because an increase in income increases demand for money while an increase in the interest rate reduces demand for money.


Further Suggestions

Phillips Curve
Reciprocal demand curve
Riding the yield curve
Social indifference curve
Parallel shift in the yield curve
Spot rate curve
Offer curve
Contract curve
BP-Curve
Lorenz Curve
Trade indifference curve
Option Pricing Curve
Production possibility curve
Demand curve
Scitovszky indifference curve
yield curve
Theoretical spot rate curve
Community indifference curve
J-curve
Supply curve
Laffer curve
Elastic offer curve
Indifference curve
Reaction curve
Learning curve


 
All rights Reserved. Do not copy without permission.