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Real GDP
The measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size by valuing goods and services at constant prices.
Price Level
The average of the current prices of all goods and services in an economy, often compared to a base year's prices to assess inflation.
Aggregate Expenditure
The total spending on final goods and services in an economy, including consumption, investment, government spending, and net exports.
Marginal Propensity
The tendency of an individual or household to spend an extra unit of currency, reflecting the change in consumption from a change in income.
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