| Aggregate Demand (AD) | no attested term | 总需求 (zǒng xūqiú) | 총수요 (chongsuyo) | The total planned spending on a country's goods and services at each price level: AD = C + I + G + (X − M). |
| Short-run Aggregate Supply (SRAS) | no attested term | 短期总供给 (duǎnqī zǒng gōngjǐ) | 단기 총공급 (dangi chonggonggeup) | The total output firms are willing to supply at each price level while wages and other costs of production are fixed. It slopes upwards, and shifts left when costs rise. |
| Long-run Aggregate Supply (LRAS) | no attested term | 长期总供给 (chángqī zǒng gōngjǐ) | 장기 총공급 (janggi chonggonggeup) | The economy's productive capacity: the output it can produce when all its resources are fully employed. Classical economists draw it vertical at full-employment output; Keynesians draw one AS curve that is horizontal, then rising, then vertical. |
| Price Level | no attested term | 价格水平 (jiàgé shuǐpíng) | 물가 수준 (mulga sujun) | The average level of prices of all goods and services in an economy, measured by a price index. A rise in the price level is inflation. |
| Real GDP | no attested term | 实际GDP (Shíjì GDP) | 실질 GDP (Siljil GDP) | GDP adjusted for inflation (measured at constant prices), so it changes only when the quantity of goods and services produced changes. |
| Potential Output | no attested term | 潜在产出 (qiánzài chǎnchū) | 잠재 산출량 (jamjae sanchullyang) | Full-employment output, Yf: where LRAS stands (or where the Keynesian AS curve turns vertical). |
| Output Gap | no attested term | 产出缺口 (chǎnchū quēkǒu) | 산출량 갭 (sanchullyang gaep) | The difference between actual real GDP and potential output. A negative output gap means spare capacity and unemployment; a positive one (an inflationary gap) means the economy is producing above its sustainable capacity. |
| Demand-pull Inflation | no attested term | 需求拉动型通货膨胀 (xūqiú lādòng xíng tōnghuò péngzhàng) | 수요 견인 인플레이션 (suyo gyeonin inpeulleisyeon) | Inflation caused by aggregate demand rising faster than the economy can increase output: AD shifts right. |
| Cost-push Inflation | no attested term | 成本推动型通货膨胀 (chéngběn tuīdòng xíng tōnghuò péngzhàng) | 비용 인상 인플레이션 (biyong insang inpeulleisyeon) | Inflation caused by rising costs of production, such as wages, oil and raw materials or indirect taxes: SRAS shifts left, so prices rise while output falls. |
| Economic Growth | tipu ohaoha | 经济增长 (jīngjì zēngzhǎng) | 경제 성장 (gyeongje seongjang) | A rise in real GDP. Actual growth uses spare capacity (AD shifts right); potential growth raises productive capacity (LRAS shifts right). |
| Recession | no attested term | 经济衰退 (jīngjì shuāituì) | 경기 침체 (gyeonggi chimche) | A fall in real GDP for two consecutive quarters: negative economic growth. |
| Fiscal Policy | no attested term | 财政政策 (cáizhèng zhèngcè) | 재정 정책 (jaejeong jeongchaek) | The government's use of its spending and taxation to influence aggregate demand and the economy. |
| Monetary Policy | no attested term | 货币政策 (huòbì zhèngcè) | 통화 정책 (tonghwa jeongchaek) | The central bank's use of interest rates (and the money supply) to influence aggregate demand and inflation. In New Zealand it is set by the Reserve Bank through the Official Cash Rate. |
| Supply-side Policy | no attested term | 供给侧政策 (gōngjǐcè zhèngcè) | 공급 측면 정책 (gonggeup cheungmyeon jeongchaek) | A government policy that aims to increase the economy's productive capacity, such as spending on education and training, infrastructure or incentives to invest, shifting LRAS to the right. |
