In the IS curve, $\tilde { Y } _ { t }$ represents:
A) potential output
B) total real output
C) short-run fluctuations in output
D) the real interest rate
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

$\tilde { Y } _ { t }$ in the IS curve represents short-run fluctuations in output, indicating deviations from potential output.

In the IS Curve Y~t\tilde { Y } _ { t }Y~t​

In the IS Curve $\tilde { Y } _ { t }$