| aggregate demand schedule | Synonym for aggregate demand curve.
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| central bank | Bank that has control over the money supply. In the United States, the Federal Reserve. In Europe, the European Central Bank.
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| demand for real balances | Quantity of real money balances people wish to hold.
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| fiscal policy multiplier | Increase in aggregate demand for a $1 increase in government purchases (or other changes in autonomous demand).
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| goods market equilibrium schedule | See IS curve.
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| IS curve | Shows all of the combinations of the real interest rate and the level of output
for which the goods market is in equilibrium ( Y = C + I + G + NX )
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| IS-LM model | Interaction of IS and LM curves determines the real interest rate and the level of income for a given price level, for which both goods and money markets are in equilibrium.
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| LM curve | Shows all of the combinations of the real interest rate and the level of output for which the demand for real money balances equals the supply of real money balances. Drawn for a given price level.
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| monetary policy multiplier | Increase in aggregate demand for $1 increase in the
money supply.
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| money market equilibrium schedule | See LM curve.
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| real money balances | See real balances.
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