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REAL ECONOMY: The physical side of the economy dealing with goods, services and resources. This side is concerned with using resources to produce the goods and services that make the satisfaction of wants and needs possible. This should be contrasted with the paper economy, or financial side of the economy.

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AGGREGATE DEMAND SHIFTS

Changes in the aggregate demand determinants cause the aggregate demand curve to shift. The mechanism is comparable to that for market demand determinants and market demand. There are two alternatives--an increase in aggregate demand and a decrease in aggregate demand. An increase in spending by any of the four sectors--household, business, government, and foreign--shifts the aggregate demand curve to right. A decrease in spending by these four sectors shifts the aggregate demand curve to left.

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RED AGGRESSERINE
[What's This?]

Today, you are likely to spend a great deal of time watching infomercials hoping to buy either a birthday gift for your grandmother or a T-shirt commemorating yesterday. Be on the lookout for telephone calls from long-lost relatives.
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This isn't me! What am I?

John Maynard Keynes was born the same year Karl Marx died.
"We can't take any credit for our talents. It's how we use them that counts. "

-- Madeleine L'Engle, Writer

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Earnings Before Interest and Taxes
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