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Government Purchases
Government purchases comprise spending by government bodies on goods and services that contribute directly to the economy's aggregate demand.
Stagflation
A period of slow economic growth and high unemployment while prices continue to rise.
Fiscal Policy
Government adjustments to its spending levels and tax rates to influence a nation's economy, aiming to manage economic output, inflation, and employment.
Aggregate Demand
The total demand for all goods and services in an economy at various price levels, at a given time.
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