Question

All of the following would be included in planned aggregate expenditure except:

A. purchases of services provided by government employees.
B. planned changes in inventories.
C. sales to foreigners of domestically-produced goods.
D. social security payments.

Answer 1

Answer:

In this case,the correct answer would be option D. given in the answer options or choices or social security payments.

Explanation:

• In Macroeconomics, planned aggregate expenditure basically includes planned consumption expenditure, planned investment level, planned government spending or expenditure and the overall net export which includes the difference between the overall or total export of goods and services and the total import level of goods and services by any country.
• Planned aggregate expenditure can be calculated by taking the summation or addition of the aforementioned components or parameters.
• However, social security payments are not included in the computation of planned aggregate expenditure as these are considered as unilateral transfer payments provided by the government. Social security payments are one way or unilateral payments or service transfers for which the government does not take any goods,services or assets from the beneficiaries or social security recipients.