The Impact of Non-Income Determinants of Aggregate Demand on GDP: A Case Study Analysis

Write a 750 to 1,000-word report on how a non-income determinant of aggregate demand affects GDP. Recall that GDP includes five components. These components as well as some of their associated non-income determinants of aggregate demand are listed below:
• Consumption — Net Wealth (Assets of Households minus Debts of Households), Price Level, Interest Rate, Consumer Expectations.
• Investment — Interest Rate, Business Expectations.
• Government — Change in Government Spending.
• Exports — Foreign Income Levels, Exchange Rates.
• Imports — Exchange Rates.
The following bullets include some words that are in blue — use these words as first-level headings with appropriate capitalization (do not use the links as headings — the words in blue that are also underlined are links). Your report should:
• Include a brief introduction and a conclusion. See the note, Introductions and Conclusions, for more information on introductions and conclusions. Your introduction should include a concise preview of your report’s topics as well as a short thesis statement.
• Discuss how one of the five components of GDP has been affected by a recent change in an associated non-income determinant of aggregate demand. Be sure you discuss whether the change increased or decreased GDP.
• Support your discussion with real-world examples, such as newspaper or magazine articles, and with statistics from websites, such as http://research.stlouisfed.org/fred2/, which was used in the study group assignment.
• Support your contentions with a real-world example of how your demand (spending) or your workplace’s (or another business’s or industry’s) demand (spending) has been affected by the change in the determinant of aggregate demand.
• Evaluate whether the trend in the non-income determinant of aggregate demand is expected to continue and, if so, for how long it is expected to continue. For example, if interest rates are on a declining trend do you expect this trend to continue or do you expect a change in the trend.
• Explain why business managers should have a thorough understanding of aggregate demand. Include this explanation in your conclusion. Please note: Your conclusion should also review all the major elements of your report.