What Is NOT Included in Aggregate Demand

question 148

Multiple Choice

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

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Definitions:

Percent

A mathematical term describing a fraction or ratio as parts per hundred, used to indicate proportions and changes in quantities.

Deflation

A decline in the general price level of goods and services, often indicating a reduction in the supply of money and credit in the economy.

Purchasing Power

Purchasing power refers to the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Unemployment Rate

The indicator showing the part of the labor force that lacks jobs but is seeking employment actively.