United States Blog #2

When it comes to the Aggregate Demand in the United States, it looks as if it has consistently grown/the curve has shifted outwards. Since 2010, Consumer spending has continued to grow and within that period has from around $10.5 trillion in 2010, to almost $13.5 trillion in late 2019. Government spending saw a decline for nearly the entirety of the first half of the decade. However, government spending has since returned to its 2010 mark of nearly $3.35 trillion. Balance of trade and business confidence have been volatile and have shown no real trend. We can't truly measure the effect of investing because it is not a measurement of a dollar value, rather it is a measure of confidence. While balance of trade is negative, it likely has little effect on the Aggregate Demand curve in the United States because its value is so low in proportion to government spending and consumer spending. Within the past ten years, it has bounced between approximately -$35 billion and -$60 billion.

In relation to Real GDP Growth, Aggregate Demand doesn't seem to have a clear correlation just from the graphs I have. However, Aggregate demand relates to Total Real GDP because both of them have consistently increased for the past decade. One correlation I did see was between Bussiness Confidence and the Change in Real GDP Growth. The Change in Real GDP Growth looks like a more smooth version of Business Confidence; they have very similar troughs, in 2016 and late 2019, and similar peaks in 2010, 2015, and 2018. However, there is one inconsistency in 2011 when Bussiness confidence has a peak, while Real GDP Growth has a trough.

Link to the graphs: https://docs.google.com/spreadsheets/d/1IeJEpl-yl1h73pq34QnaVhY1V3R5EnFx4MAmwD3YKyc/edit#gid=0

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