As a component of aggregate demand, government spending
A)includes government purchases of goods and services, transfers, and interest on the national debt.
B)is the largest component.
C)is the most volatile component of aggregate demand.
D)includes only government purchases of goods and services.

Question

Quizplus · Accepted Answer

Government spending as a component of aggregate demand specifically includes only government purchases of goods and services, not transfers or interest payments on the national debt.

As a Component of Aggregate Demand, Government Spending