Which of the following would not be directly included in aggregate demand?
A)An increase in firms' inventories
B)Purchases of goods by households
C)Firms' purchases of newly produced machinery
D)Government's tax collections

Question

Quizplus · Accepted Answer

Aggregate demand includes consumption by households, investment by businesses, government spending on goods and services, and net exports. Government's tax collections are not directly a part of aggregate demand as they represent a transfer rather than spending on goods and services.

Which of the Following Would Not Be Directly Included in Aggregate