Which of the Following Would Not Be Included in Aggregate

question 32

Multiple Choice

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

• A)an increase in firms' inventories.
• B)purchases of goods by households.
• C)firms' purchases of newly produced machinery.
• D)government's tax collections.

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Definitions:

Capital Cost Allowance

A tax deduction in Canada for the depreciation of tangible property.

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Asset

A tax benefit that arises from temporary differences between the book and the taxable income, often due to allowances and deductions recognized at different times.

Consulting Fees

Charges imposed by consultants for their professional advice and services rendered to businesses.