the quantity demanded of all goof and services at different price levels.
don't think of aggregate demand as a particular dollar amount. it is a series of quantities demanded (of real GDP) at various price levels
the nominal wage (or money wage) adjusted for price changes.
aggregate demand (AD) curve
a curve that shows the quantity of demand of all goods and services (real GDP) at different price levels, ceteris paribus
real balance effect
the change in purchasing power of dollar-denominated assets that results from a change in the price level
the value of a persons monetary assets. wealth, as distinguished from monetary wealth, refers to the value of all assets owned, both monetary and non monetary, in short, a persons wealth equals his or her monetary wealth ($1000) plus non monetary wealth ( a car)
the quantity of goods and services that can be purchased with a unit of money. purchasing power at the price level are inversely related; as the price level goes up, purchasing power goes down