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Aggregate Demand Curve
A graph representing the total demand for goods and services within an economy at various price levels, typically downward sloping, indicating an inverse relationship between the price level and the quantity of aggregate demand.
Government Purchases
Spending by the government on goods and services that are directly consumed or invested in by the government sector.
Short-Run Aggregate Supply
The total production of goods and services in an economy at different price levels in a short time frame, assuming that some production costs remain fixed.
Spending Multiplier
The ratio of a change in national income to a change in government spending that causes it, indicating the impact of fiscal policy on the economy.
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