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The Sheer Size of Aggregate Demand and Aggregate Supply
Aggregate demand and aggregate supply are made up of many components in the economy. Factors that influence the extent to which consumers, businesses, and government spend make up aggregate demand, while various short-
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The media and entertainment (M&E) industry is an important contributor to U.S. aggregate demand and supply. The industry comprises film, television, music, radio, gaming, and publishing companies. Over half of all M&E revenues are earned in foreign markets, producing a large trade surplus. Recent and projected growth of the U.S. M&E market are shown.
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Energy consumption contributes to aggregate demand and also influences aggregate supply through its effect on input prices. Oil consumption (in billions of barrels) in 1985 and 2015 in the United States and China is shown.
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98% of all apparel and 99% of all footwear sold in the United States are imported. Imports reduce aggregate demand because money is flowing out of the country to pay for these goods.
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Home ownership provides a wealth effect that influences aggregate demand. States with the highest and lowest rates of home ownership in 2015.