Aggregate Demand and Aggregate Supply definitions

Key words for Aggregate demand and Aggregate supply :)

 Aggregate demand and Aggregate supply

Positive expectations – businesses expect the future sales and profits to improve due to factors like increased aggregate demand.

Negative expectations – businesses expect future sales and profits to be less due to factors like falling aggregate demand.

Accelerator effect –  the relation between the change in new investment and the rate of change of national income.

…