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Macroeconomics: How to Derive the IS Curve (IS-LM Model Explained)
3:56
YouTubeAll About Economics with Michael
Macroeconomics: How to Derive the IS Curve (IS-LM Model Explained)
This video explains how to derive the IS curve (goods market) step-by-step. We'll learn how aggregate demand (C+I+G) determines the level of output (Y), and how the interest rate (R) negatively affects investment (I), thereby influencing output. We will demonstrate why the IS curve slopes downward and explain the difference between a movement ...
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