Aggregate Demand and Aggregate Supply

total demand for goods and services in an economy at a given time

total supply of final goods and services in an economy at a given time

total individual and household purchases of consumer goods and services

activity by companies and individuals bringing products to market

good or service sold in other countries

measurement of a country's total economic output

good or service produced abroad and bought domestically

cost of borrowing money, expressed as a percentage of the amount borrowed; or equivalently, the return on savings

cost incurred when a business changes its prices

the amount of unemployment that occurs when the economy is producing at potential output

a naturally existing form of physical capital that provides inputs to production, such as land, minerals, water, agricultural products, and forests

wages expressed in terms of the actual amount of goods and services that they can purchase, or wages adjusted for inflation

price of a good or service relative to the price of other goods and services

a price that does not change quickly in response to shifts in supply or demand

a wage that does not change quickly in response to changes in the labor market