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Government Purchases
Government purchases refer to spending by government entities on goods and services that directly contribute to the economy's aggregate demand.
Aggregate Demand
The total demand for all goods and services within a particular market or economy.
Government Impact
Refers to the effects of government policies and actions on an economy's performance and the well-being of its citizens.
Marginal Propensity
Marginal propensity refers to the proportion of an additional income that an individual consumes rather than saves.
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