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The Diagram Below Shows How a Rise in Government Expenditure

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The diagram below shows how a rise in government expenditure (G) shifts the IS curve from IS1 to IS2. What are the levels of investments in Y1 and Y2 for a fixed r? The diagram below shows how a rise in government expenditure (G) shifts the IS curve from IS<sub>1</sub> to IS<sub>2</sub>. What are the levels of investments in Y<sub>1</sub> and Y<sub>2</sub> for a fixed r?

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The investment level remains the same in...

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