Transfers are excluded from aggregate demand because they
A)do not represent purchasing power.
B)merely shift purchasing from one group to another.
C)are not easy to register in accounting.
D)only add to confusion.

Question

Quizplus · Accepted Answer

Transfers, such as social security payments or unemployment benefits, simply redistribute purchasing power from one group to another (e.g., from taxpayers to beneficiaries) without directly creating new demand for goods and services.

Transfers Are Excluded from Aggregate Demand Because They