1 The IS*curve:Goods Market Equilibrium Y C(Y-T)+I(r*)+G+NX(e) The IS*curve is drawn for a given value of r*. Intuition for the slope: ↓e三↑NX三个Y IS* CHAPTER 12 Aggregate Demand in the Open Economy slide 5 slide 5 The IS* curve is drawn for a given value of r*. Intuition for the slope: Y e IS* Y  C (Y T )  I (r *)  G  NX (e)  e   NX  Y 1