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. c
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.
