Changes in Spending and Their Impact on Expanding Aggregate Supply the US Economy for Period (2000–2020) As Case Study
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Growth in consumption and investment spending drives the expansion of Gross Domestic Product (GDP) and aggregate supply, positively influencing most economic indicators and fostering growth. The research demonstrates that rising consumption spending boosts economic growth rates. Furthermore, investment in the industrial and manufacturing sectors is crucial for achieving growth, given these sectors' capacity to absorb rapid technological advancements; this enhances the value added to their products by reducing unit costs and increasing the competitiveness of US-made goods,the US economy continued to expand consumer spending—across both goods and services—driven by economic growth resulting from investment in digital infrastructure, the impact of the technological revolution, and the leveraging of financial market strength during the first two decades of the new millennium. Econometric analysis reveals a stable relationship and causality among the study variables; specifically, 88% of the variation in GDP growth is attributable to private consumer spending and private investment spending, with a long-term relationship existing that allows for long-term forecasting.
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Mahdi Khaleel Shadeed Al-Mamoori, Ruslan Abdul Zahra Safi Al-Janabi, Abduljasim Abbas Alaallah (2026). Changes in Spending and Their Impact on Expanding Aggregate Supply the US Economy for Period (2000–2020) As Case Study . International Journal of Management and Organizational Research (IJMOR), 5(6), 01-10. DOI: https://doi.org/10.54660/IJMOR.2026.5.6.01-10