Aggregate demand is a schedule: The aggregate quantity demanded depends on (among other things) the price level. But, for any given price level, aggregate demand is a number. 3. Economists reserve the term investment spending to refer to purchases of newly produced factories, machin- ery, software, and houses. 4. Gross domestic product is the total volume of final goods and services produced in the country. 5. National income is the sum of the before-tax wages, interest, rents, and profits earned by all individuals in the economy. By necessity, it must be approximately equal to domestic product. 6. Disposable income is the sum of the incomes of all indi- viduals in the economy after taxes and transfers. It is the chief determinant of consumer expenditures. 7. All of these concepts, and others, can be depicted in a ables that affect C shift Among the most impo total consumer wealt future incomes. 10. Because consumers ho they lose purchasing leads them to reduce t 11. The government ofte demand by influencin usually through chang this policy did not wo 12. Future income prosper cut was temporary ar unaffected. The tax advertised as one-time 13. Investment is the mos demand, largely becau tied to confidence and ing investment depend house prices. Tiburos on all