Which of the Following Would Not Be Included in Aggregate

question 451

Multiple Choice

Which of the following would not be included in aggregate demand?

• A)additions of newly produced goods to inventory
• B)purchases of U.S. services by foreigners
• C)the purchase of newly produced capital goods
• D)government transfer payments such as Social Security payments

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Definitions:

Working Capital Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets, indicating liquidity.

Current Liabilities

Short-term financial obligations due within one year or within a company's operating cycle, whichever is longer.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.