Each point on the IS curve represents ________ in the goods market for the given interest rate.
A) maximum investment
B) an equilibrium point
C) a positive relationship between the price level and aggregate output
D) minimum pricing

Question

Quizplus · Accepted Answer

The IS curve represents the equilibrium points in the goods market where aggregate expenditure equals output at a given interest rate. Therefore, each point on the IS curve represents an equilibrium point in the goods market.

Each Point on the IS Curve Represents ________ in the Goods