One distinction between government purchases and transfer payments is that

Question

Quizplus · Accepted Answer

Government purchases are considered exhaustive because they directly absorb resources and are part of the government's consumption of goods and services, contributing to the economy's aggregate demand. Transfer payments, on the other hand, are nonexhaustive because they do not directly absorb resources or contribute to the economy's aggregate demand in the same way; instead, they redistribute income.

One Distinction Between Government Purchases and Transfer Payments Is That