Economics · Macroeconomics
In the macroeconomic IS-LM model, what does the IS curve represent and what is its characteristic slope?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The equilibrium in the labour market; upward sloping.
- 2The combination of fiscal and monetary policy that achieves equilibrium; downward sloping.
- 3The equilibrium in the goods market; downward sloping.✓
- 4The equilibrium in the money market; upward sloping.
Correct answer
The equilibrium in the goods market; downward sloping.
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