What is NOT included in aggregate demand?
A) purchases of stock and bonds
B) purchases of services such as visits to the dentist
C) purchases of capital goods such as ovens in a bakery
D) purchases by foreigners of consumer goods produced in Canada

Question

Quizplus · Accepted Answer

Purchases of stock and bonds are considered financial or investment transactions and are not included in aggregate demand. Aggregate demand only includes purchases of final goods and services.

Answer: B
 Visits to the dentist or any services are included in the category of services, which is one of the four components of aggregate demand.

Answer: C
 Purchases of capital goods such as ovens in a bakery are included in the category of investment spending, which is one of the four components of aggregate demand.

Answer: D
 Purchases by foreigners of consumer goods produced in Canada are included in Canada's net exports, which is one of the four components of aggregate demand.

What Is NOT Included in Aggregate Demand