Summarize what we learned in chapter 3 e We characterized equilibrium in the goods market as the condition that production, Y, be equal to the demand for goods, Z We called this condition the is relation because it can be reinterpreted as the condition that investment be equal to savingSummarize what we learned in chapter 3 We characterized equilibrium in the goods market as the condition that production,Y,be equal to the demand for goods, Z. We called this condition the IS relation, because it can be reinterpreted as the condition that investment be equal to saving