Graph 3: An increase in autonomous spending shifts the IS curve to the right.

Interest
rate, r LM

r1..……………………………………… E’
r0 ……………………………… E
αG∆͞I
IS’
IS
∆Y0
Y, Income output
Y0 Y1
Graph 4: Effect of an increase in G
Interest
rate, r LM

r’ E’
if r is constant

r0 E E”
αG∆͞G
IS’
IS
Y (Income, output)
Y0 Y0’ Y”