The amount that firms plan or intend to invest.
A curve or schedule that shows the amounts firms plan to invest at various possible values of real gross domestic product.
Aggregate expenditures schedule
A schedule or curve showing the total amount spent for final goods and services at different levels of real GDP.
The gross domestic product at which the total quantity of final goods and services purchased (aggregate expenditures) is equal to the total quantity of final goods and services produced (the real domestic output); the real domestic output at which the aggregate demand curve intersects the aggregate supply curve.
(1) A withdrawal of potential spending from the income-expenditures stream via saving, tax payments, or imports; (2) a withdrawal that reduces the lending potential of the banking system.
An addition of spending to the income-expenditure stream: investment, government purchases, and net exports.
Unplanned changes in inventories
Changes in inventories that firms did not anticipate; changes in inventories that occur because of unexpected increases or decreases of aggregate spending (or of aggregate expenditures).
Exports minus imports.
A tax that is a constant amount (the tax revenue of government is the same) at all levels of GDP.
Recessionary expenditure gap
The amount by which the aggregate expenditures schedule must shift upward to increase the real GDP to its full-employment, noninflationary level.
Inflationary expenditure gap
The amount by which the aggregate expenditures schedule must shift downward to decrease the nominal GDP to its full-employment noninflationary level.