Which of the following would be removed from the U.S.aggregate demand measurement?
A)Japan's purchase of General Electric combines from the United States
B)China's purchase of soybeans from U.S.farmers
C)A foreign tourist's purchase of New York City Statue of Liberty keychains
D)An American professor's purchase of a vintage manuscript from Rome, Italy

Question

Quizplus · Accepted Answer

Aggregate demand in the U.S. includes all spending on goods and services within the country, regardless of the buyer's nationality. Choices A, B, and C involve spending on U.S. goods and services, thus contributing to U.S. aggregate demand. Choice D, however, involves spending by an American outside of the U.S., which does not contribute to U.S. aggregate demand and would be subtracted.

Which of the Following Would Be Removed from the U