Which of the following is not a component of aggregate expenditure?
A)exports
B)investment
C)imports
D)transfer payments
E)government purchases

Question

Quizplus · Accepted Answer

Transfer payments are not a component of aggregate expenditure. Aggregate expenditure includes consumption spending, investment spending, government spending on goods and services, and net exports (exports minus imports). Transfer payments, such as social security and welfare payments, are not included because they do not represent spending on goods and services that are included in GDP.

Which of the Following Is Not a Component of Aggregate