IS-LM model: Shifts of the IS-curve скачать в хорошем качестве

IS-LM model: Shifts of the IS-curve

Difference between a movement along the IS-curve and a shift of the IS-curve It is necessary to distinguish between a movement along a given IS curve and a shift of this IS curve. There is a movement along an IS curve if the interest rate changes. A shift of the IS curve is caused by a change in any of the autonomous factors that changes the demand for goods and the equilibrium level of output and income, given the interest rate. These autonomous factors are factors like government spending, taxation, consumer and investor confidence.