Which of the following is not a component of aggregate demand?

Question

Quizplus · Accepted Answer

Government transfer payments are not a component of aggregate demand as they do not directly contribute to the demand for goods and services. Transfer payments are payments made by the government to individuals or businesses for specific purposes, such as social security, unemployment benefits, or agricultural subsidies, but they do not result in direct spending on goods and services.

Which of the Following Is Not a Component of Aggregate