IS-LM (Investment Savings-Liquidity Preference Money Supply Money) Model

A macroeconomic model that explains the national income in the short run given a
constant or changing price level
A model that describes the aggregate demand of the economy using the relationship
between output and interest rates
IS Curve: the investment/saving (IS) curve is a variation of the income-expenditure
model incorporating market interest rates (demand)
LM Curve: the liquidity preference/money supply equilibrium (LM) curve represents the
amount of money available for investing (supply)

Aggregate Demand
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The total demand by domestic and foreign households and firms for an economy's
scarce resources, less the demand by domestic households and firms for resources
from abroad. (AD = C + I + G + (X M))

Aggregate Demand Curve

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A curve describing the relationship between national income level and price level; it
represents demand for goods and services in an economy at different prices.

Expansionary Fiscal Policy

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A form of fiscal policy that works through two sides of the governments fiscal budget
spending and taxes: an increase in government purchases, a decrease in taxes, and/or
an increase in transfer payments are used to stimulate the economy, close a
recessionary gap, and decrease unemployment during or in anticipation of a businesscycle contraction. This is accomplished by increasing aggregate expenditures and
aggregate demand through an increase in government spending (both government
purchases and transfer payments) or a decrease in taxes. Expansionary fiscal policy
leads to a larger government budget deficit or a smaller budget surplus.

Expansionary Monetary Policy

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A type of fiscal policy focused on increasing the size of a country's money supply in
relation to demand; taking advantage of the increased capital to announce tax cuts,
reduction in interest rates, and higher government expenditures for the expressed
purpose of stimulating the economy to spur economic growth and correct or prevent the
problems of a business-cycle contraction.

References:
http://www.federalreserve.gov/faqs/money_12855.htm
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=expansionary+monetary+policy
http://financial-dictionary.thefreedictionary.com/Aggregate+Demand+Curves
http://www.economicsonline.co.uk/Managing_the_economy/Aggregate_demand.html
http://www.businessdictionary.com/definition/expansionary-monetarypolicy.html#ixzz3z7pGtFCW