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AGGREGATE DEMAND: The total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period (usually a year). Aggregate demand (AD) is one half of the aggregate market analysis; the other half is aggregate supply. Aggregate demand, relates the economy's price level, measured by the GDP price deflator, and aggregate expenditures on domestic production, measured by real gross domestic product. The aggregate expenditures are consumption, investment, government purchases, and net exports made by the four macroeconomic sectors (household, business, government, and foreign).

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PRODUCTION INPUTS: The resources, or factors of production, used in the production of output by a firm. This term is most frequently associated with the analysis of short-run production, and is often modified by the terms fixed and variable, as in fixed input and variable input. The quantity of a variable input can be changed in the short run and the quantity of a fixed input cannot be changed.

     See also | variable input | fixed input | production time periods | short run | long run | market period | very long run | product | production function | total product | marginal product | average product | law of diminishing marginal returns | marginal returns | short-run production | production | production cost | variables | labor | capital | firm | business | economic analysis | marginal analysis | factors of production | microeconomics | long-run production analysis | division of labor | production possibilities | ownership and control | production stages | total product and marginal product | average product and marginal product | total product and average product | marginal cost |


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COMPLEMENT GOOD

In general, one of two (or more) goods that are related in a joint manner. In terms of demand, complement goods are those that provide satisfaction of a want or need when consumed together. In terms of supply, complement goods are those that are simultaneously produced using a given resource. A complement good is one of two ways that goods are related. The other is a substitute good.

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