Aggregate Demand: Aggregate demand represents the total demand for goods and services within an economy at a given time. It consists of consumer spending, government spending, investment, and net exports.
Business Cycle: The business cycle refers to the recurring pattern of economic expansion and contraction over time. It consists of four stages: expansion (boom), peak, contraction (recession), and trough.
Inflation: Inflation is the sustained increase in the general price level of goods and services in an economy over time. During economic booms, inflation may be a concern due to increased demand for resources leading to higher prices.