Goods Market Equilibrium

assuming closed economy

total quantity of goods supplied = total quantity of goods demanded

$Y=C^d+I^d+G$

(not the same as national income accounting)

$⟹Y-C^d-G=S^d=I^d$

Equilibrium at $S^d=I^d$

Slope of Curves

Investment curve is downwards sloping ($r$ and $I^d$ relationship) Savings curve is upwards sloping (same reason)

Factor analysis