Recall that the text defines aggregate demand and supply as follows: “Firms face four sources of demand:

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Recall that the text defines aggregate demand and supply as follows:

“Firms face four sources of demand: households (personal consumption), other firms (investment), government agencies (government purchases), and foreign markets (net exports). Aggregate demand is the relationship between the total quantity of goods and services demanded (from all the four sources of demand) and the price level, all other determinants of spending unchanged.”

Aggregate supply is, “the level of output produced by firms to the price level in the long run.”

Find a recent news article (within the last six months) which addresses one or more of the sources of demand. Based on the article, describe how the sources are shifting the demand. Is it increasing or decreasing? What is causing it? Will supply be sufficient to meet that demand level?

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