Best used on a larger screen. All horizontal and vertical values are model index units, not real-world billions or percentage points. The open-economy goods market uses I + NX = S; the expenditure box below the charts shows Y = C + I + G + NX with implied C. Adjust the sliders to see how equilibrium moves; use the chevrons to open component sliders.
Output is near full employment (Y=50.0, Y*=50). Within +/-5 index units.
Output is near full employment (Y=50.0, Y*=50). Within +/-5 index units.
The IS curve summarizes open-economy goods-market equilibrium in (Y, r) space: planned spending meets income with I + NX = S (net exports NX shifts the schedule with investment). The LM curve summarizes money-market equilibrium for a given price level: higher real money supply shifts LM right/down.
The money market panel shows a vertical real money supply Ms/P and a downward-sloping money demand curve in (quantity, interest rate) space. The IS-LM diagram plots IS and LM in (Y, r) space; the IS thumbnail plots I + NX against S.
Axes are index or model units for teaching, not calibrated data. Fiscal G and components under Savings still move the combined IS schedule in the IS-LM view; use Net exports under Investment for NX.