The IS curve gives the level of output and of the real interest rate that balances the money market.

Name: The IS curve gives the level of output and of the real interest rate that balances the money market.
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Question

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The IS curve gives the combinations of output and interest rate that equate aggregate demand and supply in the goods and services market, not the money market. The equilibrium in the money market is depicted by the LM curve.

The IS Curve Gives the Level of Output and of the Real