Of the four sources of aggregate demand, I would say the main source that has caused a
lot of changes with in my company would be investment. Investment from other
companies is the main source of our income. I work at a cold storage and we store for big
companies such as Foster Farms, California Daries, Chobani, etc. If one of these
companies were to invest in another cold storage it would definitely cause some issues
within our company. We strive to be the best in cold storage so that big companies like the
ones listed above are satisfied with our services and choose to store with us each year. I
have been with this company for 7 years and within those years I have seen only 1 big
customer leave our facility. Our team was unable to accommodate their storage needs, so
we had to place them at another facility. This impacted our team drastically. Our customer
relations teams had to find us new accounts to fill the empty spaces as we had so many
empty racks in the warehouse. Our warehousemen were slow on the docks and were
unable to work full 8 hour shifts some days. Loosing a huge investor impacted the whole
team, which is why we strive to be the best we can. The total amount of products and
services in an economic system that purchasers are willing to pay for inside a given term is
called aggregate demand. Some sources of Aggregate demand is one would be
consumption. that is to say which is one's basic needs for your family, food, medicine,
entertainment, apparel and education. Another category would be Government spending
and where the most is spent is on home defense with the military. Also included would be
Investments by companies an example would be investment in the treasury market or in
real estate, or anything that has the potential to gain in value over time. Also taking the
Imports and Exports and subtracting one from the other. This is what makes up aggregate
demand such as consumption, investment, government spending, and net exports after
imports are subtracted. If aggregate supply remains steady or unchanged, a exchange in
combination demand shifts the demand curve either right or left. The general supply of
goods and/or services produced in an economic system in the course of a selected term at a
given universal charge is referred to as aggregate supply. The four sources identified with
aggregate demand has caused a change in the aggregate demand for a product or service
you or your employer use,I would have to say aggregate demand are consumption,
government spending, investments and net exports, consumption could have changes on
fixed in many different ways which may include or income and taxes about future income
and the changes in in many different levels,and I have to say that it will be covid that
affected many different business due to employment even when taxes got higher a lot of
business also got in debt due to covid also the government spending an estimate causes
most likely will go up due to an impact of loss, some of the decreases and aggregate I
have to say due to the covid rising are falling increased rates did affect a lot of business
doing the covid-19 outbreak which led to lower aggregate demand . The four sources
identified with aggregate demand are consumption, investment, government purchases and
net export.
During Covid the aggregate for dine in meals was gone. Not that people did not want to
eat out anymore, they were prohibited due to social distancing. His caused the
consumption of goods to decrease drastically at the pizza shop I used to manage. People
would order take out but die to the fear of contracting Covid we were making nowhere
near the amount of money we normally would have. The Real GDP dropped drastically
and my boss started paying for things out of pocket using his credit limit. He would not
invest in any kind of advertising to let the community know the shop existed. A lot of
people who came had thought we had just opened after being there over a year. The place
is still open but due to the owner still unwilling to advertise and unwillingness to work
with the community he is still using his credit limit to pay for a lot of his goods he offers.
The sources of aggregate demand, consumer expenditure, capital investment, government
spending, and net exports, are all watched by my employer. One of the sources of
aggregate demand that my employer closely pays attention to Government Spending.
While the company I work for operates in many different divisions, including a division
comprised of nothing but Federal contract work, my division is focused on solar and
renewable energy. Our company’s projects for the next year, as well as our estimate of
costs, is highly dependent upon how much the government subsidizes renewable energy
commercial power plants.
The increase in government spending to entice the building of renewable energy causes the
demand for our services, to construct, energize, and turn over large scale solar power
plants to a customer. As a result we are offered more jobs, however it also increases the
demand for solar panels, most of which are not produced in the country domestically.
A large hinderance to solar projects across the county has been availability of commercial
solar panels, most of which are produced in China. Due to the higher tariffs imposed on
Chinese imports and drastically clogged shipping ports, the effects of our increased
demand for panels has not been felt by Chinese producers as much as it could be. As a
result, our bids for jobs need to keep pace with rising panel costs, until panel production
can catch up with demand. the identified sources of aggregate demand and aggregate
supply include government spending, consumption, investments, and exports. All of these
sources are critical in the measure of aggregate demand. The level of consumption in a
particular market can lead to a significant shift in aggregate demand, which proportionally
affects the corresponding supply. For instance, there has been a period where most of the
consumers in the healthcare sector have been on a downtrend across most of the hospitals
across the nation. These consumers are essential products that the healthcare sector cannot
do without. When most nations crossed their borders and logistical issues due to the
pandemic, it became hard to receive these consumers. The same case happened to other
countries since the united states had to concentrate on solving the domestic crisis rather
than doing much of the exports. The demand for the consumables and the failure to meet
the demand therein Is a significant issue in the market. When such an issue hits the
market, companies are overwhelmed and, at the same time, frustrated once they are not
able to meet the actual demand. Four components of aggregate demand are net exports,
government spending, consumption, investments.
AS a trainer in a sports performance facility investments are a huge part of the success of
the business. As a training facility we must invest in the proper equipment to properly train
our clients in the most effective and safest way. If our equipment and facilities are not up
to date there may be a possibility that we can lose clients and thus revenue will decrease.
Investments are also important when it come to the up keeping of the facility. Especially
following the covid pandemic were everything had to be sanitized, and so we invested in
hiring a cleaning company to professional clean our facility on a weekly basis. Aggregate
demand is the total amount of goods and services that an economy of consumers are
willing to spend during a specific time frame. A shift in aggregate demand changes with
its relationship with aggregate supply. Aggregate demand consists of the total of consumer
spending, investment spending, government spending, and import and export spending.
Changes with any of these aggregate demands causes a shift in aggregate demand.
Aggregate demand is the sum of four components: consumption, investment, government
spending, and net exports. Consumption can change for a number of reasons, including
movements in income, taxes, expectations about future income, and changes in wealth
levels.
For me, I work for Chamberlain Group in which we manufacture garage door openers. The
housing market was very “hot” in the last year or so, so you can imagine the demand there
was for our company to produce more. During COVID, we thought we would slow down
but it was the opposite. Many of our customers bought more in order to have inventory in
case we would shut down (which we did for about a month). When the pandemic was
over, it was “overdrive” with the housing market rising and technology advancing, we
were producing a vast amount of product. Technology has been a big part of the push as
well, with the MyQ availability to use an app to open or close your garage door from
anywhere. Also being able to connect with Amazon so delivery drivers are able to put your
deliveries inside your garage instead of outside at risk of “porch pirates.” The demand has
been really high for our product these last couple of years. Consumption, investment,
government expenditure, and net exports all contribute to aggregate demand.
Consumption has affected myself by consuming goods such as food. Food prices have
increase 30% for items such as meat. Other items have been affected by demand like toilet
paper and baby formula. d
Investment has affected me personally because my 401K investment portfolio has taken
loses due to the stock market fluctuations. My employer matches 5% and this diminished
the returns I would have gained had not a deep market dive have happened.
Government Expenditure specifically affects me because I work for the Department of
Defense. The budget could have decreased in certain areas causing cutbacks in areas along
with shifts in priorities. Civilian Employment areas such as hiring, retention and other
incentives could have been affected.Net Exports have directly been affected such as our
energy independence. Energy production for oil has been halted in the United States. This
directly affects our economy net exports to other countries which would enable our country
to grow economically. Other countries who export large amounts of oil for energy
consumption are very rich and growing exponentially such as Qatar. Consumer demand for
Aggregate goods and services is affected by several factors, including government
consumption, production, spending and transfers as well as consumption and production.
