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. b
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.
