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A plotting of the
combinations of r and Y at which Y = E or, alternatively, S = 1.
In the three-sector model
(households, producers, and government), aggregate output and real income
less the sum of consumption expenditures and government purchases of goods
and services.
Real money balances less
real money balances demanded.
The level of output produced
when the unemployment rate equals the natural rate of unemployment.
Tax receipts less the sum of
government purchases of goods and
services and transfer payments (the same as the government surplus).
The curve plotting the
combinations of r and Y at which
real money balances demanded equal the real money supply for a given nominal money supply and price level.
Private disposable income
less consumption expenditures (and less net exports of goods and services
if the foreign sector is included).
Income not consumed. For the
purposes of the saving definition government purchases (and net exports of
goods and services, if the foreign sector is included) are treated as
consumption.
The approach which derives
the IS curve by using the savings equals investment expenditures
equilibrium condition.
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