| Aggregate demand | the relationship between the general price level and total spending in the economy
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| Aggregate demand curve | the relationship between the general price level and total spending in the economy expressed on a graph
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| Aggregate demand factors | variables that cause changes in total expenditures at all price levels
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| Aggregate demand schedule | the relationship between the general price level and total spending in the economy expressed in a table
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| Aggregate supply | the relationship between the general price level and real output produced in the economy
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| Aggregate supply curve | the relationship between the general price level and real output expressed on a graph
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| Aggregate supply factors | variables that change total output at all price levels
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| Aggregate supply schedule | the relationship between the general price level and real output expressed in a table
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| Business cycle | the cycle of expansions and contractions in the economy
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| Contraction | a sustained fall in real output of an economy
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| Decrease in aggregate demand | a decrease in total expenditures at all price levels
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| Depression | a particularly long and harsh period of reduced real output
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| Exchange rate | the value of one nation's currency in terms of another currency
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| Expansion | a sustained rise in real output of an economy
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| Foreign trade effect | with changes in the price level, expenditures on imports change in the same direction, while expenditures on exports change in the opposite direction
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| Increase in aggregate demand | an increase in total expenditures at all price levels
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| Inflationary gap | the amount by which equilibrium output exceeds potential output
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| Injections | additions to an economy's income-spending stream
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| Investment demand | the relationship between interest rates and investment
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| Investment demand curve | the relationship between interest rates and investment expressed on a graph
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| Investment demand schedule | the relationship between interest rates and investment expressed in a table
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| Long-run decrease in aggregate supply | a decrease in total and potential output at all price levels
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| Long-run increase in aggregate supply | an increase in total and potential output at all price levels
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| Negative unplanned investment | an unintended decrease in inventories; a shortage
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| Peak | the point in the business cycle at which real output is at its highest
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| Positive unplanned investment | an unintended increase in inventories; a surplus
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| Real expenditures | total spending in an economy, adjusted for changes in the general price level
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| Real rate of return | constant-dollar extra profit provided by a project each year stated as a percentage of the project's initial cost
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| Recession | a decline in real output that lasts for six months or more
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| Recessionary gap | the amount by which equilibrium output falls short of potential output
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| Short-run decrease in aggregate supply | a decrease in total output at all price levels, with no change in potential output
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| Short-run increase in aggregate supply | an increase in total output at all price levels, with no change in potential output
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| Trough | the point in the business cycle at which real output is at its lowest
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| Wealth effect | with changes in the price level, the real value of households' financial assets changes, causing households to adjust their spending
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| Withdrawals | deductions from an economy's income-spending stream
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2002 McGraw-Hill Higher Education