1 / 3100%
Aggregateb demandb itb isb theb finalb demandb ofb anyb goodsb andb services,b grossb domesticb
productb inb ourb country.b Theb fourb sourcesb areb theb following.b Consumptionb :b expenditureb
ofb anyb givenb householdb whichb wouldb beb clothing,b food,b electronics,b recreationb duringb ab
givenb timeb period.b Grossb investmentb :b wouldb beb tourb dollarb valueb ofb anyb newb capitalb
purchase,b anb investment,b anb expansionb inb theb economyb atb ab givenb periodb ofb time.b Increaseb
Inb Aggregateb Demandb :b Increaseb inb quantityb ofb realb GDPb itb isb demandb inb ourb economy,b
theb priceb levelb canb increaseb becauseb ab shiftb inb ourb aggregateb demandb curve.b Decreaseb inb
aggregateb demand,b canb beb causedb byb ab decreaseb inb quantityb ofb realb GDP.b Personallyb Ib
believeb thatb sinceb covidb thatb web haveb andb web areb dealingb withb priceb increaseb onb
everythingb especiallyb gas,b andb food.b Myb husbandb andb myselfb wantedb potb roastb forb dinner.b
Web decidedb tob gob ob Walmartb tob getb theb roast,b andb theb vegetablesb thatb Ib usuallyb cookb withb
it.b Web gotb inb Walmartb andb thereb wasb notb anyb beef,b reallyb nob meat,b maybeb ab fewb packagesb
ofb chicken,b nob vegetables.b Thatb wasb theb shortestb timeb Ib haveb everb spentb inb theb groceryb
store.b Notb onlyb that,b theb priceb ofb toiletb paper,b handb sanitizerb andb lackb ofb itb onb theb shelves.b
Ib personallyb feelb thatb ifb thingsb dob notb turnb aroundb soon,b web areb headedb forb ab recessionb
thatb willb leadb theb economyb intob ab depression.b Asb ab childb Ib learnedb theseb thingsb inb school,b
andb asb ab childb youb areb relievedb thatb youb didb notb haveb tob faceb anythingb likeb that.b Nowb Ib
amb anb adultb andb Ib prayb everydayb thatb ourb economyb willb seeb ab betterb dayb financially.b Asb
ab childb youb canb notb waitb tob becomeb anb adultb notb realizingb thatb withb becomingb anb adultb
comesb withb financialb responsibilities.b Aggregateb demandb (AD)b isb theb totalb amountb ofb
goodsb andb servicesb thatb consumersb areb willingb tob buyb inb ab specificb economyb andb timeb
period.b Cb =b Consumptionb (spendingb byb households),b Ib =b Investmentb (spendingb byb firms),b
Gb =b Governmentb spendingb (spendingb byb theb government),b andb (X-M)b =b Exportsb minusb
importsb areb theb fourb majorb componentsb ofb aggregateb demandb (theb differenceb betweenb howb
muchb web sellb andb buyb foreignb goodsb andb services).b Anyb aggregateb economicb phenomenonb
thatb affectsb theb valueb ofb anyb ofb theseb variablesb willb affectb aggregateb demand.b Ifb aggregateb
supplyb remainsb constantb orb unchanged,b ab changeb inb aggregateb demandb shiftsb theb ADb
curveb tob theb leftb orb right.b Theb totalb amountb ofb goodsb andb servicesb inb anb economyb thatb
consumersb areb willingb tob payb forb withinb ab givenb timeb periodb isb knownb asb aggregateb
demand.b Theb sumb ofb consumerb spending,b investmentb spending,b governmentb spending,b andb
theb differenceb betweenb exportsb andb importsb isb usedb tob calculateb aggregateb demand.b Whenb
oneb ofb theseb variablesb changesb whileb aggregate,b supplyb remainsb constant,b aggregateb
demandb shifts.b Usingb theb aggregateb demandb curve,b ab shiftb tob theb leftb indicatesb ab decreaseb
inb aggregateb demand,b whileb ab shiftb tob theb rightb indicatesb anb increaseb inb aggregateb demand.b
Theb totalb supplyb ofb goodsb andb servicesb producedb inb anb economyb duringb ab specificb timeb
periodb atb ab givenb overallb priceb isb knownb asb aggregateb supply,b alsob referredb tob asb totalb
production.b Thereb areb fourb majorb modelsb thatb explainb whyb theb short-termb aggregateb
supplyb curveb slopesb upward.b Theb firstb isb theb sticky-wageb model.b Theb secondb isb theb
worker-misperceptionb model.b Theb thirdb isb theb imperfect-informationb model.b Theb fourthb isb
theb sticky-priceb model.b Theb followingb headingsb explainb eachb ofb theseb modelsb inb depth.b
First,b whenb firmsb expectb ab highb priceb level,b theyb setb theirb relativelyb stickyb pricesb high.b
Otherb firmsb followb suitb andb setb theirb pricesb highb asb well.b Thus,b ab highb expectedb priceb
levelb leadsb tob ab highb actualb priceb level.b Whenb theb expectedb priceb levelb isb high,b producersb
produceb moreb output.b Second,b whenb theb levelb ofb outputb isb high,b theb demandb forb goodsb
andb servicesb isb alsob high.b Whenb theb demandb forb goodsb andb servicesb isb high,b theb priceb
chargedb forb goodsb andb servicesb isb alsob high.b Whenb theb priceb chargedb forb goodsb andb
servicesb isb high,b firmsb setb theirb relativelyb stickyb pricesb high.b Whenb someb firmsb setb theirb
relativelyb stickyb pricesb high,b otherb firmsb followb suit.b Thus,b theb overallb priceb levelb
increases.
Theb governmentb steppingb inb tob helpb isb goodb butb howb muchb shouldb theyb reallyb beb doing?b
Theb moneyb theyb gaveb out,b inb myb opinionb shouldb haveb beenb verified.b Ib knowb peopleb whob
didn'tb payb rentb justb becauseb evenb thoughb theyb wereb working.b Somethingb likeb thatb isb notb
rightb andb shouldb notb beb allowedb becauseb web areb allb payingb itb back.b Ib didn'tb getb ab penny.b
Theb moneyb beingb givenb awayb forb studentb loans,b medicalb billsb forb thoseb whob cameb hereb
illegally....web areb allb payingb forb it.b Ib haveb healthb insuranceb thatb Ib payb ab lotb ofb moneyb for,b
workb forb andb Ib haveb ab chronicb healthb conditionb payingb thousandsb forb ab lifeb savingb
medicationb becauseb it'sb notb covered,b whereb asb someoneb whob doesn'tb payb taxesb hereb getsb
itb forb free.b Web areb allb payingb forb this.b Allb theseb thingsb createsb anb increaseb inb demandb andb
higherb pricing.b Well,b asb farb asb importsb go,b theb governmentb doesn'tb purchaseb ab wholeb lotb
ofb bicycles,b so,b yes,b theirb priorityb isb prettyb lowb forb governmentb bicycleb imports.b
Fortunately,b web liveb inb ab capitalistb marketb whichb allowsb forb theb privatizationb ofb
companiesb whichb importb andb sellb bicycles.b Ab largeb problemb withb theb importingb ofb good,b
specificallyb fromb Asia,b duringb COVIDb wasb ab backupb ofb theb portsb forb shipmentsb goingb inb
andb outb ofb them.b Theb backupb isb stillb prevalentb todayb andb thereb isb stillb ab majorb shortageb
ofb importsb fromb Asia.b Ib definitelyb recommendb checkingb outb theb linkb below.b It'sb prettyb
wild.b likeb ab investmentb accountb 401Kb onlyb givesb youb certainb categoriesb ofb stocksb orb
mutualb fundsb tob investb in.b Thereb areb stableb valueb bondsb andb youb canb letb theb moneyb sitb
withb theb employerb match.b Trueb onb Qatarb beingb ableb tob exportb oilb thatb helpsb theirb GDP,b
thisb useb tob beb veryb trueb forb Southb Americab suchb asb countriesb ofb Venezuelab andb evenb
Rubberb Treeb plantsb inb Brazil.b Allb thatb changedb withb Governmentb policyb andb newb
presidentsb thatb tookb over.b Unfortunately,b unlessb youb liveb inb ab yearb roundb environmentb
withb ab largeb amountb ofb acresb web cannotb controlb theb foodb prices.b Whenb theb priceb ofb oilb
increasesb itb effectsb everythingb elseb includingb theb food.
Students also viewed